Mar 10, 2010 

EU-US tanker contract spat to have 'consequences': France

Claims the Pentagon skewed bidding rules for a tanker jet contract in favor of an American manufacturer will have serious consequences for EU-US relations, a French minister said Wednesday.


"This is a serious matter," Pierre Lellouche, France's minister for Europe, told reporters after a meeting of President Nicolas Sarkozy's cabinet. "Naturally, we're talking about the arms market, so it's not a classic matter of international law and the World Trade Organisation, but we're going to respond," he said, without saying what France's response would be. "I can assure you that there will be consequences. The president will act on the matter at the appropriate time. This matter is in no way finished.

For more: SGGP English Edition- EU-US tanker contract spat to have 'consequences': France

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Mar 8, 2010 

US and Armenia: Provoke China, not Turkey - by James Davis

"If the US Congress is responsible for punishing or shaming foreign regimes for evil acts, why are we not condemning China for its current actions toward the government and people of Tibet? Why are we not passing resolutions condemning the daily cyber attacks against U.S. commercial and governmental computer systems conducted by the Chinese? Why is there no bipartisan condemnation of the numerous shell corporations that have been formed in the U.S. with the fact concealed that these corporations are operatives of the Chinese military? (Now these corporations can contribute as they see fit to U.S. political races thanks to the recent U.S. Supreme Court decision.) No resolutions are in the works about China's manipulation of the value of its currency to the immediate detriment of the U.S. and other countries.

Oh, I forgot that China is the US banker. It allows us in America to continue down the road to our own economic ruin. Without China, our politicians would have to deal with our debt albatross without the option of pushing the pain onto future generations.

This may explain the resolution against the Ottoman Empire. It no longer exists. Congress can cloak itself with the halo of moral outrage without risking its catnip of borrowed money or campaign contributions."

For more: Provoke China, not Turkey » The Commercial Appeal


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Mar 4, 2010 

Soccer: U.S. soccer team listless in loss to Netherlands 2-1 - by Graham e L.Jones

Unless someone pokes a sharp stick in them, the Americans remain a team that can be taken, a team that all too often sleepwalks its way through games. This is especially true when it plays in Europe, where the U.S. has won only four of 26 games in the last dozen years. Despite the fact that several starters were playing for the opportunity to make the final U.S. World Cup roster that will go to South Africa in June, far too many players failed to rise to the challenge presented by a Dutch side that itself did not appear especially interested in the game.

The Netherlands did just enough to ensure that it won, accomplishing the feat on a penalty-kick goal by Liverpool's Dirk Kuyt five minutes before halftime and a second goal by AC Milan's Klaas-Jan Huntelaar in the 73rd minute.

With Inter Milan's Wesley Sneijder orchestrating things from the center, the Dutch controlled play, maintaining possession with apparent ease and leaving the U.S. to chase shadows.

For more: U.S. soccer team listless in loss to Netherlands - latimes.com

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Mar 2, 2010 

Soccer: Netherlands - USA: Last chance for US players to impress Bradley

American players hoping to make an impression on U.S. coach Bob Bradley before he picks his World Cup roster have one last chance Wednesday night in Amsterdam playing the Netherlands.

In its final match before the World Cup team gathers in mid-May, the United States plays an exhibition at the Netherlands Amsterdam Ajax stadium, against the world's third-ranked team. The Dutch and Spain were the only teams in European qualifying with perfect records -- the Netherlands was 8-0 and outscored opponents 17-2 in coasting to first place in Group Nine. Even with Robin van Persie still sidelined after tearing ankle ligaments in November, Dutch coach Bert van Marwijk could start Klaas-Jan Huntelaar, Arjen Robben and Dirk Kuyt up front in a stiff test for the U.S. defensive line and goalkeeper Tim Howard.

"My last memory playing Netherlands in Amsterdam Arena was not the best," midfielder Landon Donovan said. "I think we chased the ball for probably 90 minutes, so it's hopefully a little different this time. Hopefully, we have a little more of the game. It's really our last chance against a top, top, team before the World Cup and so we want to make the most of it."

After this game, the Americans gather in mid-May and play exhibitions against the Czech Republic (May 25, possibly in East Hartford, Conn.) and Turkey (May 29 at Philadelphia), with a June 5 exhibition against Australia in Johannesburg also possible. After playing England, the U.S. meets Slovenia on June 18 before finishing the first round five days later against Algeria.

For more: Last chance for US players to impress Bradley - USATODAY.com

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AIRBUS: Pentagon launches contest for aerial tanker contract

The Pentagon on Wednesday officially launched a competition to replace its aging, aerial refueling tankers. It released the requirements needed to fulfill a contract potentially worth $35 billion.

Two aerospace giants were expected to vie for the contract to build 179 tankers -- Chicago-based Boeing Co. and a team composed of Century City-based Northrop Grumman Corp. and Airbus parent European Aeronautic Defense & Space Co. The companies have 75 days to submit bids.

In recent weeks, however, Northrop threatened to stay out of the competition, arguing that the requirements may favor Boeing.

For more: Pentagon launches contest for aerial tanker contract - Los Angeles Times

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Mar 1, 2010 

Americans Prefer Online News After TV, Report Finds - by Ian Paul

According to the authors of a study, Pew Research Center's Pew Internet & American Life Project, the Internet is now the third most popular news platform, behind local television news and national television news.

For more: Americans Prefer Online News After TV, Report Finds - PCWorld


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Feb 17, 2010 

Dalai Lama and Obama to meet tomorrow

The meeting comes amid tension in US-Sino relations, with disputes simmering over US arms sales to Taiwan, claims of Chinese cyber-spying and trade deals.

China, which views the Dalai Lama as a separatist, has warned the meeting will undermine relations.

The US, while moving carefully on the issue, dismissed the fears as needless.

For the complete report - BBC News - Dalai Lama lands in US ahead of talks with Barack Obama


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Feb 16, 2010 

Bernanke vs. China? - by Steve Rosenbush

Ben Bernanke suggests the nation is on track to end a major aspect of its economic rescue program. But in doing so, he opens up the prospect that China could have a greater impact on U.S. borrowing costs than the Fed itself.

The issue already has prompted the Chinese government to tell its agencies and banks to sell all but the most secure dollar-denominated assets. "The Chinese government has ordered its reserve managers to divest itself of riskier securities and hold only Treasuries and U.S. agency debt with an implicit or explicit government guarantee," Asia Times reported Tuesday.

For the complete report: Bernanke May Be On Collision Course With China - Business News - Portfolio.com


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Feb 14, 2010 

EU protects its citizens

What looked on Thursday like a setback for the war on terrorism -- to members of the Obama administration -- was cheered in Europe on
Friday as a victory for citizens' rights. The European Parliament moved Thursday to reject a George W. Bush-era agreement that allowed United States authorities to inspect European bank transfers.

Obama officials had lobbied hard to extend the agreement, and both the European Commission and leaders of member states had already approved the treaty; but the European Parliament signalled a new era of confidence and self-assertion by blocking it, arguing that it violated European privacy laws. The unambiguous vote -- 378 to 196 -- comes against a background of shifting power in the EU.

Since just after the terrorist attacks of Sept. 11, 2001, the US has had access to some banking information stored in vast databases by the Society for Worldwide Interbank Financial Telecommunication (SWIFT), a Brussels-based consortium of banks that handles international wire transfers. This "terrorist finance tracking program," a US Treasury official told the Washington Post on Thursday, "has been instrumental in protecting the citizens of the United States and Europe and has played a key role in multiple terrorism investigations. Today's outcome is a setback ... and leaves all of our citizens less safe."
For more The World from Berlin: 'Good News at Last From Europe' - SPIEGEL ONLINE - News - International


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Feb 13, 2010 

EU Parliament: blocks US illegal powers to monitor EU bank transactions which infringe on European privacy laws

The European Parliament has blocked the continuation of a nine-year, once-secret (illegal) agreement that allows US authorities to monitor the financial transactions of EU citizens. The Parliament voted yesterday by an overwhelming majority to reject the deal, with 378 MEPs voting against the deal and only 196 voting in favour.

During its debate, MEPs expressed anger that the Parliament was only presented with the deal after the fact and was not consulted during the making of it.

"Parliament's right to consent should not be used as a retrospective tool", said UK MEP Timothy Kirkhope. "We are finally getting assurances from Council and Commission [on data protection issues] but we now need some time before proceeding further in our considerations." The MEPs urged the EU and US to come to a deal that offered better privacy protection and constituted a better deal for the EU. MEPs reiterated that any new agreement must comply with Lisbon Treaty requirements, and in particular the Charter of Fundamental Rights."

"Council has not been tough enough on data protection" said Jeanine Hennis-Plasschaert, who was the Parliament's rapporteur on the issue. She said that "the rules on data transfer and storage provided for in the interim agreement were not proportionate to the security supposedly provided," according to the statement.

German MEP Martin Schulz said in the Parliamentary debate that the deal was "a mistake and EU governments … thought they could get away with such a poor agreement, which is not in line with fundamental rights", he said. "How will data be retained, how will it be stored, can I have access to it, when it is going to be deleted? … This is a bad agreement that we simply cannot sign up to."

The European Commission, which brokered the rejected deal with the US, has told the Parliament that it will adopt a new set of draft guidelines in the coming weeks. Those guidelines "will address the European Parliament and Council's concerns [and ensure] the utmost respect for privacy and data protection," said the Parliament statement.

Note EU-Digest: This is good news for democracy in Europe and an indication that the EU Parliament is not a rubber stamp Parliament anymore. They are doing what they are supposed to do - protecting the citizens of the EU. It is also important for the US to realize they should do a better job at coordinating their own security resorces (as was proven during the recent airline terrorism event in Detroit involving a Delta aircraft coming from Amsterdam) before they infringe on other countries privacy rights.

For more: European Parliament blocks US powers to monitor EU bank transactions | Pinsent Masons LLP


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Feb 9, 2010 

Wall Street's Killer Instinct Spells Death Knell for Jobs -by Pam Martens

Wall Street is so steeped in destruction that the symbols of death are everywhere. Wall Street calls the big newspaper ads they take out to herald the launch of their market offerings a “tombstone.” (To understand how appropriate that is, consider the billions in bond and stock offerings they raise for Big Tobacco.) What does Wall Street call the completion of a buy or sell order: an “execution.” (Think of how many derivative trades they “executed” for the now crippled, life support patients Fannie Mae, Freddie Mac and AIG; or the off balance sheet vehicles they created for Enron, WorldCom, and dozens of now bankrupt companies.)

Wall Street calls an order to complete a trade without any reduction in quantity a “fill or kill.” This could just as reasonably be called a “fill or cancel” order but it’s so much more fun for the thundering herd to race around a trading floor screaming “kill it, kill it!”

What is the benefit to Wall Street in killing things or bringing the share price of companies to near worthless? Tails they win; heads you lose. Wall Street can and does make enormous profits on bets that share prices will decline (shorting), that companies will disappear (credit default swaps), that the economy will crater (interest rate swaps). And there’s a slogan on Wall Street: the trend is your friend. When it’s clear the bull is lying in the center of the ring (think Lehman’s death and the Merrill Lynch shotgun wedding on September 15, 2008), Wall Street moves its bets to the downside.

For more: Pam Martens: Wall Street's Killer Instinct Spells Death Knell for Jobs

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US Economy: Turn Wall Street Bonuses into One Million Green Job - by Les Leopold

President Obama may be joining the populist crusade against Wall Street. In the span of one week he opened up a three front war: a tax on big banks, full support for a new Consumer Financial Protection Agency, and the embrace of Paul Volcker’s plan to break up the big banks.

Let’s keep in mind how we got here. For thirty years the financial lobbyists and their willing partners in Congress and the White House engaged in an orgy of deregulation and tax reform, resulting in wealth accumulation in the hands of a few. So much money accumulated with the wealthy, that they literally ran out of investments in tangible assets in the real economy. Wall Street solved that problem by creating a menagerie of deregulated fantasy finance instruments that sucked up the surplus wealth and earned Wall UStreet more profits that ever before. (Summers and Geithner were avid cheerleaders for this process.) The process of securitization and derivatives was creating an upside down pyramid of synthetic instruments leveraged on top of risky assets like subprime loans, which in turn created an enormous housing bubble. (And before that the dot.com bubble, the savings and loan crisis, and so on–it should be clear by now that we’re dealing with a distended financial sector that inherently builds bubbles.)

Turn Wall Street Bonuses into One Million Green Jobs « SoapBox

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Feb 7, 2010 

EU and U.S. Organic Markets Face Strong Demand Under Different Policies


Organic markets in the European Union member states and the U.S. are nearly the same size in terms of retail sales. At the same time, their farm sectors differ significantly, with the EU-15 member states having more organic farmland and more organic operations than the U.S. (see “EU and U.S. Organic Sectors”). The U.S. and EU Governments have also adopted markedly different policy approaches to the organic sector. The EU actively promotes the growth of the organic sector with a wide variety of policies designed to increase the amount of land farmed organically, including government standards and certification, conversion and support payments for organic farmers, targets for land under organic management, and policies supporting research, education, and marketing. The U.S. largely takes a free-market approach: its policies aim to facilitate market development through national standards and certification and federally funded grants that support research, education, and marketing for organic agriculture.

For more click on this link

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Feb 6, 2010 

Google: The Virtual Dictator of the Digital Economy - by Miachael Gray

At the surface it seems such a simple question to answer. However, to find the answer we need to dig a little deeper and understand the complexities of the modern internet and electronic commerce.

Google’s dominant share of the search landscape puts it in a unique position. For many consumers, Google is the internet, or at the very least Google is the start page of the internet and doorway to the rest of the virtual world. For most web publishers and site owners, Google is responsible for the lion’s share of their traffic. In some cases Google can account for 60-90% of a website’s overall site visitors. For an ecommerce website getting traffic from Google can be the difference between making a healthy profit or going out of business.

Google has cornered the market on traffic. They control who is listed on the organic side and set pricing, some times at astronomically uncompetitive levels, for paid advertisers. It has become a Google world and there wasn’t anything you could do to change it. Google operates in a market without government intervention, oversight or regulations.

Google is taking very aggressive steps to retain the market share that they fought to achieve. By giving away free services like GMail, Google Reader, and Google Analytics, they price competition out and keep users locked into their offerings and their integrated search engine.

But Google isn’t stopping there. Now they want all your data.

New initiatives like personalized search, and web history seek to gain a deeper level of access to your private world and all of the websites you visit. Google ‘bookmarks’ gives them access to the sites that you think are important, noteworthy or worth revisiting. Simply put - Google wants to mine your personal data and life to find out as much as it can about you. They want to learn how to market to you more effectively, and how they can extract the most profit from you.

While they may not have set out with this goal in mind, for many people Google knows more about them than the government.

While Google may be too powerful they’ve crafted a public image that is exactly the opposite. With their college-campus-like work environment, bean bag chairs, 6o’s throwback lava lamps, the image they created goes hand-in-hand with their “do no evil motto”. Google is too powerful, they know it, and that’s why they are willing to give you so much for free. The less attractive and harder they make it for you to change, the more they have you tucked neatly into their back pocket.

Note EU-Digest: Even though the above report dates back to 2007 it has become more actual than ever.

A recent proposal by Google which would give them the digital rights to millions of hard-to-find books has not only Google rivals but also consumer watchdogs, academic experts, literary agents, state governments and even foreign governments up in arms.

In an opinion filed by the US government it states they believe a proposal to give Google the digital rights to millions of hard-to-find books threatens to stifle competition and undermine copyright laws. The justice department also raised concerns that Google's partnership with the participating US publishers could turn into a literary group that would wield too much power over book prices. Judge Chin has scheduled a hearing for February 18 to consider approving the class-action settlement.


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Feb 5, 2010 

EU: "Rompuying along" - ANGLO-SAXON EURO SCEPTICS THE MAIN SOURCE OF THE PROBLEM

"Three headaches obsess Brussels at this moment ( say Eurosceptics) . First comes the spectre of a euro-area crisis. Senior figures say it is a question of “when not if” external aid is sent to prevent cash-strapped Greece from defaulting on its debts. Second : Under the Lisbon treaty summits are meant to take place in Brussels, hosted by the new permanent president of the European Council, Herman Van Rompuy. But Spain, which holds the rotating EU presidency until June 30th, insisted on inviting Mr Obama to Madrid. He has now made clear he is not coming. A third headache is the “EU 2020 reform agenda”, a ten-year plan to make Europe dynamic by administrative fiat. The 2020 agenda is to be discussed at an informal summit called by Mr Van Rompuy on February 11th. EU leaders hope to build on the rubble of the 2000 Lisbon agenda, whose stated aim was to make the EU “the most dynamic and competitive knowledge-based economy in the world by 2010 capable of sustainable economic growth with more and better jobs and greater social cohesion and respect for the environment.” It failed.

Lisbon failed because lots of Europeans do not want to live in the most dynamic and competitive economy in the world. They prefer to work fewer hours than Americans or Japanese (about 10% fewer, on average), to take long holidays, and to retire as soon as possible. Among EU leaders it is fashionable to predict that the financial crisis will lead to a revolution in “European economic governance”. Yet that phrase hides a dearth of new ideas", they say.

Note EU-Digest: The Anglo-Saxons Euro-sceptics and their friends in the press just love to bad-mouth the EU, don't they? The most obvious reason Mr. Obama snubbed the EU Summit has probably all to do with Afghanistan, where the Europeans have been reluctant to support the US with additional troops and to help keeping a corrupt local government propped up. If there is a problem today in the EU, the Anglo-Saxon Euro-Sceptics are probably the main cause of it.

For the complete report also see: Charlemagne: Rompuying along | The Economist


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Feb 3, 2010 

US blames Lisbon Treaty for EU summit fiasco - by Andrew Rettman

The US State Department has said that President Barack Obama's decision not to come to an EU summit in Madrid in May is partly due to confusion arising from the Lisbon Treaty.

State department spokesman Philip J. Crowley told press in Washington on Tuesday (2 February) that the treaty has made it unclear who the US leader should meet and when.

For more: EUobserver / US blames Lisbon Treaty for EU summit fiasco

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WORLD RECESSION AND RECOVERY: Most European countries still persuing failed neo - liberal policies

A report from the International Labour Organisation (ILO) released Wednesday points to dramatic levels of unemployment in the developed countries.

”The number of unemployed in the (developed economies and European Union) region is estimated to have surged by more than 13.7 million between 2007 and 2009, with an increase of nearly 12 million unemployed in 2009 alone.” Despite comprising less than 16 percent of the global workforce, ”the developed economies and European Union region accounted for more than 40 percent of the increase in global unemployment since 2007,” the report says. ”Unemployment in the developed economies and European Union is expected to remain elevated, with a projected increase in the regional unemployment rate to 8.9 percent in 2010.”

The trend in Europe seems to be running counter to trends at the level of national policy. ”Unfortunately, most governments in Europe never really renounced the neo-liberal paradigm, despite the profound social and economic crisis that deregulation and radical free-market policies triggered in the continent,” Kerstin Sack, who tracks international financial institutions and economic solidarity at the German anti-globalization movement ATTAC, tells IPS.

Despite the negative effects of deregulated market economy policies, Sack says the conservative new German government in office since last September ”is acting the same as in the most dogmatic neo-liberal years of the 1980s.” Indeed, the German government - made up of the Christian Democratic Union of Chancellor Angela Merkel and the neo-liberal Free Democratic Party - has deepened the neo-liberal regime of the last 20 years, with tax cuts for high income sectors, reduction of social benefits for workers and low-income families, and a call for a further salary freeze for civil servants and employees of private enterprises. The reluctance of European governments to give up neo-liberal policies is hard to understand because the worst of the crisis may lie ahead, Xavier Timbeau, director of the French Economic Observatory (OFCE), tells IPS.

And the same goes with France, which appears determined not to learn lessons. ”The government is not ready to discuss a tax increase,” says Philippe Frémeaux, former director of the Agency for Economic Research and Forecast, and now chief editor of the monthly magazine Alternatives Economiques. ”On the contrary, (President Nicolas) Sarkozy's government has just approved yet another tax cut in favour of restaurants and hotels owners, and is paying additional subsidies to physicians.”


For the complete report: RECESSION AND RECOVERY: The Lucky Are Unemployed

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Feb 2, 2010 

Human Rights China: Obama to meet Dalai Lama despite China warnings

US President Obama will still meet the Dalai Lama despite Chinese warnings as the White House shrugged off Beijing's warning. "We expect that our relationship with China is mature enough where we can work on areas of mutual concern such as climate, the global economy and non-proliferation and discuss frankly and candidly those areas where we disagree," he told reporters traveling with Obama to New Hampshire. "The president told China's leaders during his trip last year that he would meet with the Dalai Lama and he intends to do so," White House spokesman Bill Burton told reporters.

A senior Democratic U.S. senator said on Tuesday he had asked 30 U.S. companies, including Apple, Facebook and Skype, for information on their human rights practices in China in the aftermath of Google's decision to no longer cooperate with Chinese Internet censorship efforts.

Ties between the United States and China have also soured over trade and currency quarrels, control of the Internet, and Beijing's jailing of dissidents.


For more: Obama to meet Dalai Lama despite China warnings | Reuters

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Does Washington care about the EU?

Try as it might, the European Union’s efforts to act like a bigger player in world affairs keep running into obstacles.

The latest setback is a report that President Barack Obama won’t be able to make it to the annual EU-U.S. summit this year, pencilled in for Madrid in May. A hectic domestic agenda and the fact the U.S. president made 10 foreign trips last year — more than any other president in his first year in office — means staying at home is the priority and the Europe Union will have to wait.

Even though Spain is hosting the EU-U.S. summit, it will be chaired by the new EU president, Herman Van Rompuy. Van Rompuy’s office knew nothing on Monday about whether Obama was attending, saying only that it had read press reports that he wasn’t coming. Officials referred calls to the Spanish rotating presidency in Brussels, which is in charge of planning summits and other meetings for the next six months. Even if Obama were to withdraw officially from the Madrid summit, it’s not clear from a protocol point of view who the White House should write to to explain: the Spanish EU presidency in Brussels, Van Rompuy’s office, the president of the European Commission or the Spanish prime minister’s office in Madrid.

The Lisbon treaty has been in force for only two months, but the question reputedly once asked by former U.S. Secretary of State Henry Kissinger ”Who do I call if I want to speak to Europe?”, is still appears valid.

Note EU-Digest: Why doesn't EU President Van Rompuy take some initiative in this respect and let his second in command handle the meeting while he also stays away if Obama does not show-up.

For more: Does Washington care about the EU? | Analysis & Opinion | Reuters

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FARC Worlds Bigest Cocaine producer: Marxists with a Better Business Plan


According to a document captured by Colombian military intelligence, the Revolutionary Armed Forces of Colombia (FARC)—the South American nation's biggest guerrilla army—negotiated a deal in 2007 to supply Mexican drug cartels directly on consignment, bypassing the gangs that had previously served as go-betweens.

Under the pact, the FARC undertook to provide a kind of vendor financing for shipments of tons of cocaine, in essence taking on more risk in search of higher margins. The flood of cash that has since flowed to the guerrillas has helped them remain a threat to the government of President Alvaro Uribe and has offset the damage to their finances inflicted by a seven-year army offensive. "I've heard the FARC derives somewhere between $1 billion and $2 billion a year from the trade," says Michael Braun, who stepped down in 2008 as the U.S. Drug Enforcement Administration's operations chief. "I happen to believe that number is woefully underestimated."

The FARC, a Marxist group, has been fighting to topple Colombia's government for 45 years, making it the oldest guerrilla force in Latin America. More than a decade ago it began to finance its operations with cocaine sales and has since become the world's biggest producer.

For more-Marxists with a Better Business Plan - BusinessWeek

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Why Are Americans Passive as Millions Lose Their Homes, Jobs, Families and the American Dream?

Why do Americans remain disorganized at home while their European and Asian counterparts flood into the streets and strike in militant, organized protest? Why do others believe in their potential to reclaim their lives while we do not? The latest figures from Salary.com indicate that if a stay-at-home mother in the United States were replaced by paid domestic products and services, the cost would be $122,732 a year.

Perhaps the greatest reason is that Americans are psychologically and also physically exhausted. They have fewer vacations and longer workweeks than any of their Western European counterparts. Activity in society, including activity in politics, has become a luxury good for those fortunate few who have extra time and energy.

Note EU-Digest: Unfortunately this is not just a US phenomena, but something that is happening in most of the so-called affluent countries. The world has become an ignorant consumer market , which passively accepts just about anything they are being told, be it coming from the media or the government.
Eventually, the economic and social pressures this will create is going to reach a boiling point, that will cause a world-wide revolution to make the French revolution look like a tea party.

For more: Why Are Americans Passive as Millions Lose Their Homes, Jobs, Families and the American Dream? | Media and Culture | AlterNet


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Jan 31, 2010 

Climate change has become the theater of geopolitical competition and China has the upper hand (so far)

While new energy sources will initially be more expensive than fossil fuels, politicians in the West, mindful of a stagnant or shrinking manufacturing base, are hopeful that clean technology offers a way of rebuilding older industrial areas by creating a comprehensive green supply chain.

The quest for a new comparative advantage, economists say, is all the more urgent as the crisis has left the financial-services sector reeling — a sector that was long considered one of the last bastions of Western sophistication. From China’s perspective, experts say, climate change offers the opportunity to leapfrog Western competitors. “The low-carbon economy is the future,” said David Li Daokui, a professor at the Center for China in the World Economy in Beijing.
Moreover, the quest for sustainable energy and industrial processes is playing out against the backdrop of vastly different economic and political systems.

In China, the government poured an estimated euro 318 billion ($440 )into clean energy last year. It is investing heavily in renewable energy and nuclear power. It also is pursuing efforts to make extraction of its vast coal reserves cleaner. Already home to one-third of the globe’s solar-energy manufacturing capacity and 400 solar-energy companies, China is expected to surpass Spain this year as the No. 3 country in terms of wind power installations, behind Germany and the United States. William Rhodes, senior vice chairman of Citigroup and board vice chairman of the National Committee on U.S.-China relations, predicted that Beijing’s research into storing carbon emissions underground could soon lead to a major breakthrough.

Note EU-Digest: Most experts agree that the European Union and the West can not and do not want to match China's controlled and centralized economy in the area of environmental research. One of the ways to encourage the Chinese to move away from their self centered objectives on the environment is to produce a binding global agreement on carbon emissions (with or without the Chinese) as soon as possible. One does not have to be an Einstein to figure out that China's reluctance to accept such a deal at present is precisely to win time and a competitive advantage over the rest of the world. With a global deal on carbon emissions in place nothing will stop the power of  innovation and the market place to become fully engaged in the process, benefiting everyone.

The Race Is on to Develop Green, Clean Technology - DealBook Blog - NYTimes.com


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China freezes US military exchanges and long term relationship becomes troubled

Beijing has suspended military exchanges with the US and threatened sanctions over Washington's plan to sell arms to Taiwan, according to the official Xinhua news agency. The decision was announced on Saturday, just hours after China cautioned that the US's decision to sell $6.4bn worth of weapons to Taiwan would cause "serious damage" to relations and co-operation between the two nations.

He Yafei, the Chinese vice-foreign minister, told Jon Huntsman, the US ambassador to China, that the arms deal could jeopardise bonds with Washington.

However, Laura Tischler, a US state department spokesman, said: "This is a clear demonstration of the commitment that this administration has to provide Taiwan the defensive weapons it needs and as provided for in the Taiwan Relations Act." She said that the arms deal would contribute to "maintaining security and stability across the Taiwan Strait".

Speaking to Al Jazeera on Saturday, Christian Ford, Beijing bureau chief for the US newspaper Christian Science Monitor said, "when you look at relations between and Washington and Beijing, there are definitely some more hiccups on the horizon." Ford mentioned an expected meeting between Barack Obama, the US president, the Dalai Lama, the Tibetan spiritual leader, as a case in point. "When that happens, Beijing is bound to react," he said.

For the complete report: Al Jazeera English - Asia-Pacific - China freezes US military exchanges

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Jan 30, 2010 

10 Ways to Stop Corporate Dominance of Politics

The recent US Supreme Court decision to allow unlimited corporate spending in politics just may be the straw that breaks the plutocracy’s back. Among the 10 suggestions to combat this is also to Require shareholders to approve political spending by their corporations. Public Citizen and the Brennan Center for Justice are among the groups advocating this measure, and some members of Congress appear interested. Britain has required such shareholder approval since 2000.

10 Ways to Stop Corporate Dominance of Politics | Civil Liberties | AlterNet

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Jan 27, 2010 

Alternative Energy: Windpower in the US grew 39 percent last year

Despite a crippling recession and tight credit markets, the American wind power industry grew at a rapid pace in 2009, adding 39 percent more capacity. The country is close to the point where 2 percent of its electricity will come from wind turbines.

While that is still a small share, it is up from virtually nothing a few years ago. Continued growth at such a fast pace could help the nation lower its emissions of the gases that cause global warming, The New York Times’s Jad Mouawad writes.

The American Wind Energy Association, in its annual report to be released on Tuesday, said the amount of capacity added last year, 9,900 megawatts, was the largest on record, and was 18 percent above the capacity added in 2008, also a banner year.

For more: Wind Power Grew 39 Percent Last Year - DealBook Blog - NYTimes.com



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Jan 26, 2010 

US oil industry hit by cyberattacks: Was China involved?

The oil and gas industry breaches, the mere existence of which has been a closely guarded secret of oil companies and federal authorities, were focused on one of the crown jewels of the industry: valuable “bid data” detailing the quantity, value, and location of oil discoveries worldwide, sources familiar with the attacks say and documents obtained by the Monitor show.

The companies – Marathon Oil, ExxonMobil, and ConocoPhillips – didn’t realize the full extent of the attacks, which occurred in 2008, until the FBI alerted them that year and in early 2009. Federal officials told the companies proprietary information had been flowing out, including to computers overseas, a source familiar with the attacks says and documents show.

The data included e-mail passwords, messages, and other information tied to executives with access to proprietary exploration and discovery information, the source says. While China’s involvement in the attacks is far from certain, at least some data was detected flowing from one oil company computer to a computer in China, a document indicates. Another oil company’s security personnel privately referred to the breaches in one of the documents as the “China virus.”

For more: US oil industry hit by cyberattacks: Was China involved? / The Christian Science Monitor - CSMonitor.com


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US versus Europe: Super versus moderate


"Americans who have traveled to Europe will have noticed that there's a significant difference in portion sizes between our country and European countries. A college friend who moved to Germany as an exchange student back in the late Eighties wrote to say he was hungry for the first couple of weeks, because he was being served less than he was accustomed to -- but after that period of "initiation," he found that he was satisfied with the smaller proportions. There is something about the American psychology that craves bigness, and feels cheated in some way by smaller portions. I wonder if it has always been this way, or if this is something that we've gotten acculturated to by marketing over the past 30 or 40 years. I suspect it's mostly (but not entirely) the latter. As I've said before during discussions about liberal drug laws in the Netherlands, insofar as they work for the Dutch, it has a lot to do with the inner self-discipline the Dutch have as a characteristic of their residual Calvinist culture (they may not have the religion anymore, but they are much more self-controlled compared to us). You don't see all-you-can-eat buffets in Holland, which explains why that culture is better able to handle liberalized drug laws than we would be in America.

Note EU-Digest: Unfortunately Europe is also quickly joining the gluttons of this world, mainly as a result of advertising. Burger King in Europe noted they saw a considerable upswing in their sales when they started selling the heavily advertised "super burger".

Let's hope Europe won't reach the state the US is in. Maybe its time to include in advertisements for fast food, similar to what they do for tobacco and alcohol, that fast food can cause obesity, which can kill you?

Will it fly, probably not, because the food industry lobby will probably kill any action in that direction.

For more: Against supersized cocktails - Rod Dreher


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US Economy: the party is over, time to pay the bills - by Alister Bull

President Barack Obama, under pressure from deficit hawks, will seek a three-year freeze on domestic spending in his 2011 budget that would save $250 billion by 2020, administration officials said on Monday.

Part of the problem, on top of a severe recession that hit government revenue, are entitlement programs like social security and Medicare, the huge public healthcare program for older Americans.

Obama wants to reduce soaring Medicare costs through an overhaul of the $2.5 trillion U.S. healthcare system, but his reforms are bogged down in Congress.

For more: Obama to seek three-year freeze on domestic spending - washingtonpost.com


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Jan 25, 2010 

Europe and the US facing the world.

The world expectantly awaits word from its most powerful man, Barack Obama who delivers his State of the Union address on January 27. On that day, France’s Nicholas Sarkozy will make a keynote speech at Europe’s most prestigious annual gathering in Davos, Switzerland, of global political, business and civil society leaders.

The only significant American personality at the World Economic Forum’s Davos meetings will be Lawrence Summers. This continues the Obama White House snub to the World Economic Forum (WEF), a Swiss body whose mission is to “improve the state of the world”. During the Bush presidency, former Vice President Dick Cheney, Secretaries of State Colin Powell and Condoleezza Rice and numerous Cabinet members, attended Davos.

Sarkozy, who has pretensions to European leadership, is the top draw at Davos this year. He has cooled to Obama in recent months despite being the most pro-American French President in half a century. Other political glitterati at Davos will include the Presidents of Brazil, South Korea and South Africa. The Prime Ministers of Canada and Spain will also attend.

Note EU-Digest: Have the Davos meetings outlived their time or have they always been a "talk fest" platform for the International financial sector to impress on the world political leadership that they know what is best for the Hlobal economy. Given what we know today this is not the case, so why don't we concentrate on the G20 meetings instead as an alternative.

For more: Obama and Sarkozy: the US and Europe facing the world | The Moderate Voice


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Jan 24, 2010 

Is the US really number one?

How can a nation being $12.3 trillion in debt be the richest on Earth? Is the measure based on the US trade system? The US trade deficit hit $36 billion in November. Despite economists' suggestions, it's a sign of a recovering economy. How long can the US spend more than they have and still be afloat? Could the US status as the richest maybe be based on personal wealth? Various estimates put average consumer debt in the US at $8,000 to $20,000, and that doesn't include home mortgages, which also would not be a good measure of its wealth.

When President Bush left the political scene the US had accumulated a national debt of about $10.5 trillion. It's now 20 percent higher just a year later. Of the $12.3 trillion, more than $7.5 trillion of it — representing 54 percent of the nation's GDP — was borrowed from foreign nations and private investors. And the U.S. Senate plans to raise the debt ceiling to $14.3 trillion, which essentially represents the entire U.S. economy.

Maybe the potential of its economy still makes the US feel supreme. After all a well-run government spending money wisely could do great things, are the best and the richest. Or could the question on this issue of be naïve? It doesn't seem so. While U.S. GDP may suggest the US is still No. 1, about 54 percent of the title is credited to other nations and investors.

EU-Digest

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Jan 23, 2010 

US Politics: Democrats must play hardball now against Republicans for obstructing progress

A new poll found that Obama supporters who voted for Brown in Massachusetts, or stayed home, believed that "Democratic policies were doing more to help Wall Street than Main Street." A majority of people polled favored a public option, and opposed the Senate health care bill because it didn't go far enough.

Things look uncertain for the Democrats. With control of the White House and both houses of Congress, the party in power appears unprepared to lead at times, and unable to make good on its 2008 campaign promises. But there is opportunity in times of crisis, and the Obama administration just got a badly needed wake-up call, a "come to Jesus" moment, if you will. The future still looks bright for the Democrats, provided they take a number of important steps:

1. Obama must take the lead and set the agenda.
2. Democrats must resist the temptation to moderate and move to the center
3. Pass real health care reform with a public option. With a sixty-seat, filibuster-proof majority in the Senate, the Democrats failed at health care reform. Now they have fifty-nine seats, which is still a majority that will allow them to pass legislation. Democrats must find a way--whether through budget reconciliation, changing the Senate filibuster rules, intestinal fortitude, or other means--to pass health care reform. If the Senate Republicans want to filibuster, and justify a broken system that allows 45,000 people to die each year for lack of health insurance, then so be it. This is President Obama's signature issue, and he has spent a great deal of political capital on it.
4)Go after the banks. Obama captured the presidency on a message of change, disrupting the status quo and challenging entrenched centers of power. In the days of the Great Recession, millions of people are suffering from chronic unemployment, home foreclosures and financial ruin. The public has properly identified the big banks as the cause of America's economic meltdown.

The 2010 elections are still far away, and a lot can happen between now and November. Ironically, the defeat in the Massachusetts U.S. Senate race was the best thing that could have happened to President Obama. Still faced with a weakened and unpopular opposition, the Democratic Party has a unique opportunity to learn from its missteps, and come back stronger than ever.
For more: USHow Obama and the Dems can make a comeback


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Why America and China will clash - by Gideon Rachman

Google's clash with China is about much more than the fate of a single, powerful firm. The company's decision to pull out of China, unless the government there changes its policies on censorship, is a harbinger of increasingly stormy relations between the US and China.

The reason that the Google case is so significant is because it suggests that the assumptions on which US policy to China have been based since the Tiananmen massacre of 1989 could be plain wrong. The US has accepted - even welcomed - China's emergence as a giant economic power because American policymakers convinced themselves that economic opening would lead to political liberalisation in China.

If that assumption changes, American policy towards China could change with it. Welcoming the rise of a giant Asian economy that is also turning into a liberal democracy is one thing. Sponsoring the rise of a Leninist one-party state, that is America's only plausible geopolitical rival, is a different proposition. Combine this political disillusionment with double-digit unemployment in the US that is widely blamed on Chinese currency manipulation, and you have the formula for an anti-China backlash.

For more: FT.com / UK - Why America and China will clash


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Jan 20, 2010 

Europe's Obama craze cools - by Gavin Hewitt


The cold was biting, but they would not be deterred - they wanted a vantage point on history. Many were African Americans who could scarcely believe that the day had come when a black man was occupying the White House. I found others, too, from across the globe, drawn there by the belief that America could be different, that under Barack Obama it would live up to its high ideals.

It was inevitable that disappointment would follow. Such is the reality of power. The Europeans had fallen for Obama. It was partly because he was not George Bush. It was also because they wanted America to be a place that fitted their dreams. So a year ago a new dawn broke. Almost immediately Europe nominated Obama for a peace prize. It was a gift for good intentions. Yet shortly after that Europe experienced Obama's detached cool. There was no rush to get European leaders to the White House. They were vying with each other for an invite, but Obama's world view was not Europe-centred. And then reality set in. The nuclear-free world remains but a dream. Afghanistan was going badly. President Obama faced a painful choice: to commit more troops or to scale back. While he agonised, Europe waited. When the American administration finally backed a surge of troops, Europe hesitated. To some Europeans the Obama world came to resemble much of what went before.

And then there was Copenhagen. Europeans believed they had set the agenda, they had been out in front over climate change. However, in the chaos of the conference they saw Obama do a deal with the Chinese and other emerging "giants". Europe was marginalized and felt excluded.


For more: BBC - Gavin Hewitt's Europe: Europe's Obama craze cools

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Space exploration: Florida ill-prepared to replace thousands of lost jobs once space shuttle program ends

NASA will ground space shuttles for good this year, barring an unexpected change of heart from President Barack Obama. Up to 7,000 positions at Kennedy Space Center and at least 10,000 more Florida jobs that depend on them could be lost along with the program.

This economic meteor has been hurtling toward Florida for several years, but state leaders have done far too little to plan for it. In last year's legislative session, not a single proposal to boost the space industry in the state was passed.

Members of Florida's congressional delegation have been pushing to raise NASA's budget and direct dollars to other job-creating projects in the space sector. But these goals also demand action on the state level. Instead, Gov. Charlie Crist and state lawmakers are talking about renewal of a sales-tax holiday on school supplies and cutting corporate taxes in Florida. Little is being said, however, about investing in an industry that's critical to Florida's economy.

For the complete report: Florida ill-prepared to replace thousands of lost jobs once space shuttle program ends.\ - South Florida Sun-Sentinel.com

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Euro/Dollar Weakness Foretelling Equity Decline

The reactionary policy of central banks and governments in 2008-2009 re-opened the monetary floodgates, a supply increase that outpaced the increasing deleveraging-based monetary demand. The injected liquidity also loosened credit markets, allowing monetary demand and safe haven demand to fall, and increased investor perception.

The next cycle in this reactionary and interventionist game that central banks are playing involves a resurgence of the monetary demand side offsetting the supply. At this stage, an increase in interest rates or another liquidity extraction tool isn't necessary to catalyze a rush to liquidity. The deleveraging and credit tightening is already there and has been continuing, even into the face of a massive rally. This status quo merely needs to offset what's left of monetary supply increase.

For more: Euro / Dollar Weakness Foretelling Equity Decline? -- Seeking Alpha


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US Politics: Republican Spin A Disaster For Democrats in Mass.

Reeling from the loss of a long-held Massachusetts Senate seat, Democrats are rethinking the lessons of Barack Obama's 2008 election, with the GOP cheerfully suggesting they scale back their ambitions and agenda.

Most immediately, Brown's win Tuesday over Martha Coakley to replace the late Edward M. Kennedy will deprive Democrats of a filibuster-proof Senate majority. That could kill the Democrats' effort to revamp health care unless House Democrats reluctantly embrace a previously passed Senate version that many of them dislike. It would require no new Senate action, although liberal groups might be furious

For more- Analysis: GOP sees Mass. win as stop sign for Dems - washingtonpost.com


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Jan 19, 2010 

Wall Street’s Power Grab - by Michael Hudson

You almost could hear the bankers heave a sigh of relief when Haiti’s earthquake knocked the Financial Crisis Inquiry Commission hearings off the front pages and evening news broadcasts last week. At stake, after all, is Wall Street’s power grab seeking to centralize policy control firmly in its own hands by neutralizing the government’s regulatory agencies. The first day – Wednesday, January 15 – went innocuously enough. Four emperors of finance were called on to voice ceremonial platitudes and pro forma apologies without explaining what they might be apologizing for. Typical was the statement by Goldman Sachs chairman Lloyd C. Blankfein: “Whatever we did, it didn’t work out well. We regret the consequence that people have lost money.”

Mr. Bernanke ignored the very first lesson taught in business schools. This was the lesson taught by William Petty in the 17th century and used by economists ever since: The market price of land, a government bond or other security is calculated by dividing its expected income stream by the going rate of interest – that is, “capitalizing” its rent (or any other flow of income) into what a bank would lend. The lower the rate of interest, the higher a loan can be capitalized. At an interest rate of 10%, a $10,000 annual income is worth $100,000. At 5%, this income stream is worth $200,000; at 4%, $250,000. Mr. Bernanke thus rejected over three hundred years of economic orthodoxy in testifying recently that the Fed was blameless in fueling the real estate bubble by slashing interest rates after 2001. Financial fraud also was not to blame. Anointed with the reputation for being a “student of the Great Depression,” he showed himself to be clueless.

While financial services “are essential to our modern economy, the excesses of the last decade” represent “a costly diversion of resources from other sectors of the economy.” This is the same criticism that John Maynard Keynes levied in his General Theory, citing all the money, effort and genius that went into making money from money in the stock market, without actually contributing to the production process or even to tangible capital formation. In effect, we are seeing finance capitalism autonomous from industrial capitalism. The problem is how to restore a more balanced economy and rescue society from the financial sector’s self-destructive short-term practices.

For more: Wall Street’s Power Grab

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US Housing market: Homebuilder Confidence in U.S. Unexpectedly Decreases - by Bob Willes

Confidence among U.S. home builders unexpectedly dropped in January to the lowest level since June, a sign the housing recovery may stall in coming months.

The National Association of Home Builders/Wells Fargo index of builder confidence decreased to 15 from 16 the prior month, the Washington-based group said today. Readings below 50 mean most respondents view conditions as poor.

The report showed traffic slowed to a 10-month low, indicating the government’s extension and expansion of its first-time buyer program has, so far, not drawn in new demand after propelling total sales to an almost three-year high in November. A projected record 3 million foreclosures this year may also pressure prices, making it more difficult for homebuilders to turn a profit.

For more: Homebuilder Confidence in U.S. Unexpectedly Decreases (Update2) - BusinessWeek

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US Economy: Boston Fed chief says double-dip downturn still possible - by Jay Fitzgerlad

A double-dip recession is “not out of the realm of possibility” if another “financial shock” occurs, such as Europe’s banking system coming apart or government spending collapsing due to declining tax revenues at the state and local levels, said Rosengren, president of the Federal Reserve Bank of Boston. Another area of potential trouble is the battered commercial real-estate sector, whose woes are putting strains on the U.S. banking system.

Eric Rosengren says double-dip downturn still possible - BostonHerald.com

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Cameron’s Avatar may be banned in China

James Cameron’s latest blockbuster may soon be banned in China since the Chinese authorities are not pleased with the rebellious message of the movie. The state owned China Film Group has asked the theatres across the country to stop screening the 2D version of Avatar from January 23 onwards after orders being issued by the Beijing’s propaganda chiefs. The Chinese government fears that he citizens of its not so democratic state will draw inspiration from the revolutionary zeal of the Navi people in Avatar.

For more: Cameron’s Avatar may be banned in China | Entertainment and Showbiz!

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Google Postpones Mobile Phone Introduction in China - by John Liu, Nerys Avery

Google Inc. postponed the introduction of its mobile phones in China, the world’s biggest handset market, amid a censorship dispute that began last week when the company said it may close its offices in the nation.

A ceremony for China Unicom (Hong Kong) Ltd.’s introduction of mobile phones using Google’s Android software scheduled to take place in Beijing tomorrow has been postponed, Marsha Wang, a Beijing-based spokeswoman for the Internet company, said today. Wang said she didn’t know when the event may be rescheduled for.

China was home to 384 million Web users at the end of 2009, according to the China Internet Network Information Center, a state agency that registers online domain names. The government censors online content by closing domestic Web sites and blocking those based overseas such as Facebook Inc., Twitter Inc. and Google’s YouTube.

The nation had more than 738 million mobile phone users at the end of November, according to government data. China Mobile Ltd. is the biggest carrier, followed by China Unicom and China Telecom Corp.

For more: Google Postpones Mobile Phone Introduction in China (Update1) - BusinessWeek

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Gavin Hewitt's Europe: Haiti tests European response

BBC

"Haiti tests European response

Gavin Hewitt | 10:35 UK time, Monday, 18 January 2010

French and US rescuers in Port-au-Prince, Haiti, 17 Jan 10At every disaster you find emergency teams from Europe. In the Pakistani earthquake I flew in a German helicopter. The Swiss arrived early. I found the same covering the tsunami in Asia. The Italian teams, as always, proved they have some of the best rescue workers in the world.

So again this time in Haiti. There are Welsh firefighters rescuing a two-year old girl. Spanish and French teams have been tearing at the rubble at the Hotel Montana. In a disaster the secret to early success is small mobile teams that arrive quickly and save lives. Initially it is difficult co-ordinating these teams. National search and rescue squads have to deploy at once. They go into neighbourhoods and, like with the Israeli team yesterday, they pull survivors from the rubble where they find them."

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Americans donating money for Haiti via their cell phones reach $ 20 million mark

Americans who are turning to their cell phones to donate money via text message for Haitian relief efforts have pledged more than $20 million as of Monday, an unprecedented amount for mobile donations.

The Chronicle of Philanthropy estimated Monday that donations to earthquake-ravaged Haiti now exceed a record-breaking $150 million, more than four times the amount given to tsunami relief efforts in 2004.

Social networking sites like Facebook and mobile phone technology have made it easier for charities like the American Red Cross — which has raised $12 million via text message alone — to raise these needed funds.

A number of other relief groups have been added to the accepted list of organizations that can receive text message donations from customers of the four main wireless carriers in the United States — Verizon Wireless, AT&T, Sprint and T-Mobile, said Jim Manis, chairman and CEO of the Mobile Giving Foundation (www.mobilegiving.org).


More from: Cell fone texters raise $20 million for Haiti -- Port Angeles Port Townsend Sequim Forks Jefferson County Clallam County Olympic Peninsula Daily NEWS


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Jan 15, 2010 

China tries to keep Google conflict from damaging business ties with US - by Joe McDonald

China tried Friday to keep its censorship row with Google from damaging business confidence or ties with Washington, promising good conditions for foreign investors but giving no sign it might relax Internet controls.  U.S.-China trade and economic ties will not be affected by any Google Inc. decision to withdraw from China, said Commerce Ministry spokesman Yao Jian at a regular briefing. However, he insisted foreign companies must obey Chinese law.

"China will still strictly adopt a policy of openness and offer a good investment environment," Yao said. "We emphasize that foreign companies including Google should all follow international standards and respect local law and regulations and local culture and customs to shoulder social responsibility."

The loss of such a high-profile company would be an embarrassment to communist leaders, who want to make China a technology leader. But the ruling party sees control over information as critical to maintaining its monopoly on power.

U.S.-Chinese ties are periodically strained by disputes over trade, human rights and U.S. support for self-ruled Taiwan, claimed by Beijing as its own territory. But the two sides maintain dialogue in a series of forums and say they want constructive relations.

The White House applauded Google's announcement that it would stop censoring search results in China and might close its China-based Google.cn site after hacking attacks on its Gmail email service. But other companies appear unlikely to follow suit and challenge China's Internet controls.

Note EU-Digest: China should understand "it takes two to tango".

The Canadian Press: China tries to keep Google conflict from damaging business ties with U.S.


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Jan 12, 2010 

Learning From Europe - "Europe is actually the opposite of what conservatives claim: "Europe is an economic success" - by Paul Krugman


Europe has its economic troubles; who doesn’t? But the story you hear all the time — of a stagnant economy in which high taxes and generous social benefits have undermined incentives, stalling growth and innovation — bears little resemblance to the surprisingly positive facts. The real lesson from Europe is actually the opposite of what conservatives claim: Europe is an economic success, and that success shows that social democracy works.

Actually, Europe’s economic success should be obvious even without statistics. For those Americans who have visited Paris: did it look poor and backward? What about Frankfurt or London? You should always bear in mind that when the question is which to believe — official economic statistics or your own lying eyes — the eyes have it.

Europe is often held up as a cautionary tale, a demonstration that if you try to make the economy less brutal, to take better care of your fellow citizens when they’re down on their luck, you end up killing economic progress. But what European experience actually demonstrates is the opposite: social justice and progress can go hand in hand.

For the complete report - Op-Ed Columnist - Learning From Europe - NYTimes.com

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Pollster Rasmussen says Americans now believe Barack Obama and Congressional Democrats are taking US in wrong direction - by Tony Phyrillas

Nearly 80 percent of Americans told Rasmussen just before the November 2008 election that the country was on the wrong track. That explains why Barack Obama was elected president and Democrats picked up seats in Congress.

Bush has been out of office for 11 months as promises of "hope" and "change" swept the land, but most Americans now believe Barack Obama and Congressional Democrats are taking the country in the wrong direction.

A majority of voters — 62 percent — believe the nation is heading down the wrong track, according to the latest Rasmussen Reports national telephone survey. Just 32 percent of U.S. voters say the country is heading in the right direction. That's a small gain after two months of decline that culminated in a finding of 29 percent, the lowest number Rasmussen reported since February 2009.

For complete report: 2010 shaping up as year of change - The Mercury Opinion: Pottstown, PA and The Tri County areas of Montgomery, Berks and Chester Counties (pottsmerc.com)

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Jan 10, 2010 

The End of Chimerica

For the better part of the past decade, the world economy has been dominated by a unique geoeconomic constellation that the authors call "Chimerica": a world economic order that combined Chinese export-led development with U.S. overconsumption on the basis of a financial marriage between the world's sole superpower and its most likely future rival. For China, the key attraction of the relationship was its potential to propel the Chinese economy forward by means of export-led growth. For the United States, Chimerica meant being able to consume more, save less, and still maintain low interest rates and a stable rate of investment. Yet, like many another marriage between a saver and a spender, Chimerica was not destined to last. In this paper, economic historians Niall Ferguson of HBS and Moritz Schularick of Freie Universität Berlin consider the problem of global imbalances and try to set events in a longer-term perspective.

The End of Chimerica — Harvard Business School - Working Knowledge

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Jan 9, 2010 

Grim US Jobs report: 85,000 lost in December

Dashing hopes that December would be a job-generator, the Labor Department on Friday reported a net nationwide loss of 85,000 jobs for the month.

The unemployment rate stayed steady at 10 percent, but analysts quickly pointed out that was a bit misleading because 661,000 job-seekers simply stopped seeking jobs, mucking up an already ambiguous picture of the job market.

For the complete report: Another grim U.S. jobs report — 85,000 lost in December - San Jose Mercury News


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US fighter aircraft flying from Netherlands Antilles violates Venezuelan airspace says Chavez

Venezuelan President Hugo Chavez said a US military aircraft had violated the country's airspace for 15 minutes before being intercepted and driven out by two Venezuelan F-16s.  Chavez said the aircraft had flown from the Netherlands Antilles' island of Curacao, and was escorted out of Venezuelan airspace, but later returned for 19 more minutes.

'They are warplanes used for the imperial war, not - as (the US) claims - specialized aircraft to combat drug trafficking,' he said during a cabinet meeting Friday.



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Chiquita Bananas settles suits over their terror payments

Chiquita Brands International Inc., which in 2007 pleaded guilty to U.S. charges of paying terrorist groups in Colombia for protection, said it reached a "favorable" settlement of shareholder lawsuits over the illegal payments.

The downtown Cincinnati-based product company will not pay money damages under the proposed deal, Chiquita spokesman Ed Loyd said Wednesday in a phone interview. A notice of the settlement was filed Tuesday in federal court in Fort Lauderdale, Fla.

For more: US: Chiquita settles suits over terror payments


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Jan 8, 2010 

Healtcare: US medical care kills more people by medical errors than are killed on the road

More people in the US are killed by medical errors each year than are killed by auto accidents. While the cost of US healthcare exceeds that of any other country in the world, the quality of healthcare is rated lower than the forty some European Union countries, including Canada and many of the poorer countries.

While Americans try to hang on to their belief that theirs is the greatest nation in the world, there is a growing awareness of how the important people in their lives cause them harm and have betrayed them.

American Healthcare is Becoming a Dangerous Practice - Salem-News.Com


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US Economy: Outlook for job market is grim

"All signs point to a rocky recovery," says economist Heidi Shierholz at the Economic Policy Institute. "We will likely see elevated unemployment for at least the next five years." She reckons joblessness could still be stuck at 8% in 2014. The economy must clear some imposing hurdles, Shierholz says. The Federal Reserve, having pushed short-term interest rates close to zero, doesn't have many tools left in its economic fix-it kit. State governments, their tax revenues eroded by the recession, are slashing programs and jobs to meet balanced-budget requirements.

The Bureau of Labor Statistics expects consumer spending to grow 2.5% a year from 2008 to 2018, down from average annual growth of 3% in the previous two decades. Spending on durable goods, excluding autos, will grow 4.9% a year through 2018, down from 8.1% annual growth from 1998 to 2008. Sales of cars and light trucks won't reclaim the heights they reached in the mid-2000s, when they surpassed 16 million a year: Government forecasters expect auto sales to hit 14.4 million in 2018. Foreign competition and automation will continue to kill manufacturing jobs: The government expects factories to cut 1.2 million manufacturing jobs by 2018.

Seeing the fastest job growth at 72% through 2018 are biomedical engineers (median wage: $77,400). "I can see myself staying in the medical device industry," says Johns Hopkins grad Hutchens. "It's only growing. There are going to be a lot of cool projects to work on."

Outlook for job market is grim - USATODAY.com


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