Tuesday, January 25, 2011

Tunisia's Deposed Ben Ali Family: Canadian Immigration's political statement

Yesterday reports appeared in the Canadian press, TV and radio, about the arrival in Montreal of family members of the deposed Tunisian dictator Zine El Abidine Ben Ali and his wife, Leila, nee Trabelsis.  The expatriate Tunisian community in Montreal had already been watching the situation closely as unidentified Tunisian officials had arrived there as early as last week, having been whisked away from the airport by Tunisian consulate limousines.  "The Family," also referred to as a "Quasi-mafia" by a US diplomat in a leaked cable, "gets what it wants," whether it's "cash, services, land, property, and yes, even your yacht."

Tunisia by Keith Roper
With stories of "The Family's" corruption and opulent tastes going mainstream in Canada; appropriation of state gold and private real estate and business, theft of a yacht from France, pet tigers and mansions; amid gross poverty and repression in Tunisia; the Canadian government and its immigration department headed by Jason Kenney have scrambled to distance itself from the former dictator's clique, saying the Ben Ali extended family is "not welcome."  However, minister Kenney has pointed out that some family members already have permanent residence status and thus may legally stay in Canada.  Canadian Immigration is "investigating" the matter.

That the Conservative government in Canada is now back-pedalling speaks not to their values but to the concerns of their public-relations department.  The fact that members of the Ben Ali/Trabelsis clan already have been furnished permanent-resident status by a Canadian government well aware of its excessive criminality and human rights abuses is a statement in of itself.  That members of this family would consider Canada as a second home to where they can escape justice is another.

George Galloway by DavidMartynHunt
Almost two years ago, Jason Kenney's immigration department blocked anti-war British Member of Parliament George Galloway from entering Canada for a planned speaking tour, on the pretense that he was a threat to national security.  Mr Galloway has since been allowed to enter Canada after a federal court ruled that the decision to bar his entry was a matter of politics, not security.  Canadian Immigration officials have also consistently denied status to and attempted to deport US Army "deserters," or war resisters, who face harsh sentences in the US after fleeing to Canada when Army officials in the US refused to recognise them as conscientious objectors.  Reports of harassment by Canadian police and immigration agencies of legally landed US war-resisters also exist.

Such immigration policies are a microcosm of the Canadian government's broader policy which is demonstrably cynical, anti-democratic, pro-war and elitist.  That the government would allow Canada to be used as a base for a quasi-mafia to hide wealth pilfered from Tunisia in the form of Canadian real-estate and savings accounts by granting them permanent-residency, while tying up courts and spending public resources on persecuting US war-resisters and a democratically-elected British parliamentarian is a statement to all who are listening:  That people of conscience, who speak out for peace and social justice and who have public support are to be viewed as threats; and that criminals and abusers of human rights are welcome, as long as their crimes are profitable and committed out of sight.


Read about "The Family" coming to Canada:
http://www.vancouversun.com/news/Family+members+Ousted+Tunisian+president+reach+Montreal/4150470/story.html
http://www.theglobeandmail.com/news/national/quebec/a-tunisian-palace-in-the-heart-of-montreal/article1873921/
http://www.nationalpost.com/news/canada/Dictator+family+investigated+immigration/4160387/story.html

Read about George Galloway's recent visit to Canada:
http://www.theglobeandmail.com/news/politics/george-galloway-takes-shots-at-jason-kenney-pm-from-alberta/article1811320/

Read about a US war resistor:
http://www.globalresearch.ca/index.php?context=va&aid=4969

Read the World Headlines Review report on the Tunisian unrest which forced Ben Ali from office:
http://worldheadlinesreview.blogspot.com/2011/01/tunisia-and-algeria-north-african.html

Friday, January 21, 2011

Basra and Iraq: Oil and Expectations

A strange portrait of the Southern-Iraqi city of Basra is painted in a recent and brief Economist article.  Better than Baghdad struggles to find real evidence of improvement of quality of life or opportunity in Basra, which is Iraq's international oil and shipping hub and home to a large disenfranchised Shia population.

Basrawi Street by 17th Fires Brigade
The Economist compares the situation in Basra of three years ago, "when anti-Western Shia militia controlled the streets," with the "more business friendly" Basra of today.  With the view confined to this time frame, that the city continues to exist at all could be an improvement, given that the city in 2008 was torn apart in the "Battle of Basra" or "Operation Charge of the Knights" which saw a week of coalition airstrikes and street battles before a ceasefire with Muqtada al-Sadr and the Mahdi Army was negociated.  That "terrorist attacks are a monthly rather than daily horror" is also presented as an improvement, though "monthly" seems an exagerated infrequency.

The article describes the area around Basra as a "geological El Dorado," duly noting that the Rumaila and West Qurna oil deposits, when discovered, combined as "the second-biggest oil field in the Middle East."  Such wealth has gone largely untapped as wars and international sanctions prevented Saddam Hussein from bringing the surrounding oil fields into efficient production.  The opportunity that this presents, it would seem to the Economist, is the obvious catalyst to prosperity in Basra, as its first evidence of an "improving" situation is that "BP signed a technical-services contract for Rumaila last year... it's operations, together with its partners from Chinese and Iraqi state-owned oil companies, are gaining momentum." 

The article conveys a number of interesting images: "People eat juicy prawns in restaurants... sometimes sitting out past midnight on the balmy banks of the Shatt al-Arab; it is still unthinkable in Baghdad to relax on the edge of the Tigris... A smart hotel with a conference centre has just opened... Emirates airline is set to begin daily flights next year... sales of flashy cars have been soaring... the price of taxis and meals in good restaurants have been shooting up."  Certainly such scenes are confined to the centre of the city, where there are small enclaves of middle class wealth among a larger 'other-half'.  It describes a recent oil-and-gas conference where managers from Halliburton and a Mercedes-Benz dealer "rubbed shoulders" with average Iraqi businessmen looking for opportunities to provide local logistical support.  It would seem that Operation Iraqi Freedom and the Battle of Basra have indeed secured some type of opportunity for Iraqis; to tap a Reaganomic trickle from foreigners busily appropriating Iraq's natural wealth.

Upon describing such dubious "improvements," The Economist does not fail to admit how bad the overall facts of life in Basra are, seven years after the fall of Saddam Hussein:  "The dusty roads into the city pass miles of slums.  The canal that goes through the centre is stinking and stagnant.  The council was promised a dollar for every barrel of oil produced in the province but the cash has yet to be seen.  Many development projects have stalled... the number of jobs on offer has only slightly increased... Most foreign businessmen from Europe and America still prefer to lodge on a military base several miles outside the city, where they are still occasionally subjected to mortar fire."  The piece concludes with the ignominious statement: "Basrawis are being warned against having unrealistic expectations."  One is left to wonder what type of expectations in such conditions are unrealistic?  Any expectations of average Basrawis are in any case likely tempered by the daily news, such as the recent January 14th escape of twelve Al-Qaeda members who walked out of a fortified Basra jail wearing police uniforms; sprung from captivity by corrupt guards, Al-Qaeda infiltration of local authorities and higher authorities in Baghdad.  The jail's entire staff has been under arrest pending the full investigation.  Such corruption and displays of influence and power by terrorist groups are sure to remind the people of Basra that arrivals by Mercedes-Benz to riverside Shrimp-cocktail parties is not in the offing for all.


Read the Economist article:
http://www.economist.com/node/17633299

Read about the Basra Al-Qaeda jail-break:
http://www.thenational.ae/news/worldwide/middle-east/escaped-iraqi-al-qaeda-prisoners-had-inside-help
http://www.reuters.com/article/idUSTRE70D47P20110114

Friday, January 14, 2011

Revolution in Tunisia?

Zine el Abidine Ben Ali
The President of Tunisia, Zine el Abidine Ben Ali, has been driven from office. Following up on a previous article here at World Headlines Review about civil unrest in Tunisia, demonstrations only intensified in the face of the lethal force applied by police and military in attempts to quell the protests.  Security forces have killed 30 people amidst the protests according to confirmed official counts, with sources on the ground reporting the death toll as higher than 60, after several instances of security forces firing into crowds.  The CBC is reporting (Jan. 14) that Zine el Abidine Ben Ali has fled the country, putting an end to his 23 year reign as President.  Reports say Saudi Arabian authorities have confirmed that Ben Ali and his family have arrived there, after being denied entry to France.

Earlier this week there were many last-minute promises by Ben Ali; to step down in 2014; to allow greater freedom of movement and freedom of internet access; that security forces would stop using lethal force against protestors after two dozen had been killed; that rising milk, bread and sugar prices be brought down and capped by law; that opposition parties may legally be formed; but protests continued.  Demonstrators did not see Ben Ali's concessions as enough or genuine.

The popular uprising, sparked on December 17 by the suicide protest of university graduate Mohammed Bouazizi continues, even after the president's abdication; with riots and looting occuring in spite of attempts by police and military to protect property and restore order.  This could be expected as the uprising began as a protest against broader social and economic conditions in Tunisia, not specifically against the former President, who was a symbol of elitism and corruption.  The speaker of Parliament, Fouad Mebazaa, has been sworn in as interim president, and an interim government is being formed with the intent of holding Presidential elections within 60 days, in accordance with the Tunisian constitution.

It remains unclear whether the popular uprising which ousted the president will actually result in real and tangible political change in Tunisia.  However, an entire young generation of Tunisians is now experiencing freedom unlike at any time in their lives under the Ben Ali era, they suddenly have freedom of speech and movement, freedom to form political organisations, freedom of press, and freedom from internet censorship and bans on internet websites.

The following video is an ITN report posted to Youtube just after the President's whereabouts became unknown.  Pictures and video that are now pouring out of Tunisia in the absence of censorship authorities can be seen on the internet especially at youtube and AJE:


Read and watch World Headlines Review's recent coverage of Tunisia here:
http://worldheadlinesreview.blogspot.com/2011/01/tunisia-and-algeria-north-african.html

Watch More Videos:
Al-Jazeera  video report
Dec. 14th CBC video report

Bangladesh: Dabbling in Dhaka Stock Markets

A classic stock market boom-bust cycle is underway in Bangladesh, inciting riots after the closure of the country's main markets in Dhaka and Chittagong this week.  The picture painted by the charts and reports from Bangladesh make for an abject lesson in how markets fluctuate and are driven by salesmanship and sentiment.

The chart below demonstrates relatively stable conditions in the Dhaka Stock Index until a surge of buying in November of 2009 (Point "I") across all sectors in the market formed the catalyst for a year of bullish sentiment which drove markets ever upward.  At the time Point "I" also represented an all-time high for the market:

Chart Analysis by Phil McGavin
The peak at Point "II" on the chart represents mid February, 2010, a point in time at which stockmarket prices were already double what they had been a year before that point in February 2009.  At this time an article, Stock Market: A Ticking Time Bomb, appeared in the the Bangladeshi publication The Financial Express, discussing the phenomenon: "The surge in the price index and the associated increased market volatility, somehow reminds us about the boom and bust of 1996. A sudden influx of funds and a surge in retail investors are pushing the DSE index forward without regard to economic fundamentals...Currently the market is entirely being driven by mob frenzy, and how long this will continue is to be seen."  The article discusses M2 inflation and an influx of new and uneducated investors and margin traders as the forces behind the accumulation and higher valuation of the market's stocks, resulting in the week-to-week setting of new highs.

Point "III" on the chart represents the peak of the euphoria, which was reached in the first week of December 2010, roughly a month ago. From there prices have fallen at breakneck speed.

During the period between Points "I" and "III", ordinary Bangladeshis became enamoured with the ongoing success of the stock markets, as they watched the value of their cash savings gaining only on marginal interest.  Average Bangladeshis also understood that their savings were losing value as a cause of the severe boughts of inflation they were experiencing in food and fuel prices.  Throughout this time, investment retailers and banks, similar to those we have in the West such as CIBC Wood Gundy, the Cooperators and Edward Jones to name a few, were able to paint the market as a secure vehicle for savings and earnings as they could present data and charts which showed values and returns on an uninterrupted upward trajectory.  They made a great deal in fees and commissions by helping millions of ordinary Bangladeshis get into the market.

However, exactly as happens everywhere else, most ordinary Bangladeshis as well as the low-level investment package salespeople working for the Retailers and Banks, did not know that the Banks and Investment firms themselves were already placing sell orders at the predicted tops in the same sectors and stocks they were still enticing people to buy and earning fees on.  These large institutions correctly recognised that soon there would be no significant amount of investors or capital left to purchase further stock and continue to drive prices upwards.  They also recognised that the mindless mass-purchasing of the stock market (that they helped to create) had driven prices well beyond their fundamental value.

On Dec. 5th, a major process of unwinding began as large investors and banks began to "book profits," which is economic jargon for realising cash gains by liquidating an asset.  Even during this time less prudent Bangladeshis were still offering to buy stock at prices which had the smart money hitting the sell button.  One by one these large stock holders began to unload, and in the glut of selling prices have tumbled since early December to Monday's low.  On that day, the entire Dhaka exchange index lost 9.25% percent inside an hour, before authorities halted trading to prevent a complete collapse of the market.  The BBC reports that "police used tear gas and baton charged investors who had attacked government buildings in protest at collapsing share prices" on Monday.  Such a sharp decline likely represents a sudden awareness by many more market participants that the markets are still overvalued, and they are thus either exiting the markets or unwilling to invest in it further.  More unfortunately, it represents the self-fuelling effect of automatic execution stop/sell orders and margin calls which were triggered as prices fell, which added to the momentum of the selling frenzy.  It was this automatic and self-perpetuating triggering of sell orders which caused authorities to suspend trading on the exchanges.  The massive dip and its triggering of stop/sells and margin calls has forced book-losses on many ordinary investors, who are for the most part poorly advised and educated as to how to compete in financial markets.  

Chart Analysis by Phil McGavin
The chart to the left shows the market from just this past August until now.  "III" is the same December 5th point as that of the previous chart, the ultimate high of the market, which was 8918.5.  Point "B" is the low of 6499.5 which was formed after trading was suspended this Monday, January 10th.  While such is an astounding loss of 28.2%, this only reflects movements in the stock index, which is itself an average of the values of all stocks on the exchange.  Many investors have realised losses far worse than this as their exposure to the market is in only a number of stocks thereof; many individual stocks performed far worse than the market average.  Usually such stocks are held primarily by uninformed investors who purchase baskets of stock packages and mutual funds from retail investment firms.  These are the people rioting in the streets and claiming that they have lost most of their savings.  Though the index did recover to above 7500, it is clear that this is to a level which is still not above the upside of a forming downward channel. That levels in the index were restored to where they were a few days before Sunday and Monday's panic does not change the fact that sentiment has turned against the market and that prices are likely to continue downwards even faster than the extreme manner in which they rose, to levels which are below actual stock values.  These fluctuations will see many middle class people in Bangladesh wiped out and starting from square one in a country where there is no social safety nets and whose lowest common denominator is homeless refugees of the past years' repeated monsoon floods.

The ongoing Bangladeshi Stock Maket unravelling is a real-time view into the anatomy of a market bubble, and yet another of example of why people everywhere must be weary of investing in markets they do not understand.  To invest in any market is primarily a speculative business decision, not a method for retirement savings.  One should not undertake to do so without some education and limited experience of their own.  Furthermore, one should be leary on handing over their hard earned money to brokers and investment retailers whose organisation's primary interest is fees and commissions; organisations who are not regulated from betting against their own advice; advisors who in large part have no experience or earnings in stock markets and whose education is limited to brief certificate programs at community colleges which merely familiarize them with basic economic terminology and theory.  


Read the Financial Exchange article from Point "I", December 1, 2009:
http://www.thefinancialexpress-bd.com/more.php?news_id=85612

Read the "Ticking Timebomb" article from Point "II", February 19, 2010:
http://www.thefinancialexpress-bd.com/more.php?news_id=92946

Read about the Riots:
http://www.bbc.co.uk/news/business-12149340
http://www.bbc.co.uk/news/business-12162039

Wednesday, January 12, 2011

China: Fear of its Rise is Fear of Ourselves

A recent Economist article, The dangers of a rising China, leads a 14 page report loosely discussing the dangers posed to the world by China's eclipsing of the USA's international economic and military order.  The article attempts to draw parallels in the power-balance shift between Britain and Germany which led to the first World War, and that between the US and Britain, which is seen to have been peaceful.  Alternatively positive and negative outlooks are presented as The Economist offers its superficial analysis and weak solutions, but as to how to foster peace between the People's Republic of China and the West, the article does offer one shining and perhaps accidental insight.    

San Fran Olympic Torch Rally by tomnono
The parallels drawn between the hegemonic shifts of the 20th century at first appear credible.  Indeed, the competitive quest for empire and economic primacy on the European continent and elsewhere was the cause for the British-German arms race, ultimately which manifested in the orgiastic violence of the Great War which saw 16 million deaths and 21 million wounded, civilian and military.  This pessimistic view is countered with the absurd assertion that "Unlike the 19th-century European powers, it (China) is not looking to amass new colonies."  If colonialism was a method of expropriating the wealth of and creating markets in foreign lands, then China will surely remain at odds with the West on this basis, as both compete as Germany and Britain once did; in Asia, Africa and Latin America, employing trade agreements, capital and cooperation with corruption, as well as providing economic and military advisors to grease the wheels of neocolonialism; that which is the demonstrable policy of both the West and of China.

The Economist also looks hopefully to the main hegemonic shift of the 20th century, that from British to American.  This is ironic, since it was the devastating global conflagration of World War 2 which dismembered the British Empire and broke the British people's will to maintain it.  The British homeland itself was left in ruins, and thereby a hegemonic shift was a defacto result.  Thus it was war that ushered in the shift of global power, eventually in favor of the US.  However, the American global order was not immediately secured, but only itself born out of a further 40 years of global militaristic/economic expansion; major US wars in Korea and Vietnam; the Soviet war in Afghanistan; the littany of military actions across the third world; and a Nuclear standoff with Soviet Russia.  That this hegemonic shift "went well" as The Economist puts it, seems in the light of history preposterous.

What The Economist's hopeful bias will not permit in its report is a recognition that economic, technological and social structures are infinitely different than at any time in history, thus such a shift as it would happen today or in the future is without any useful precedent.  To start, the previous examples involve competing powers sharing in European heritage, culture and languages, and a similarity of social ethics, aspirations, and global outlook.  In the case of China, these are much different.  Not only are there vast differences in all these catergories between China and the West, but Chinese Nationalism is keenly aware of its recent history as a colonial subject of the West, and sees the economic and political elites in the US as the inheritors of that imperialist know-how and infrastructure.

Chinese Nationalism looks upon its long-time enemy Japan, perhaps correctly, as simultaneously a base for the projection of American military and economic power, and an unapologetic beligerrent whose political class still absolves and honors as heroes the Imperial Army Generals and Soldiers who committed the occupation of China and the rape of Nanking.  Offerings by Japanese Prime Ministers, most recently in 2009 by Taro Aso, at the Yasukuni Shrine and War Memorial where recognised war criminals are honored, have created tremendous popular backlashes in China.  China sees itself surrounded by the American military and its proxies in the pacific, with the US Navy sitting in South Korean and Taiwanese waters within shooting distance of the Chinese coast.  Such a situation could only be hypothetically balanced in size and proximity by China's occupying Cuba, the Bahamas and the Canadian Province of Nova Scotia with 70,000 troops and therein installing and equipping dozens of Naval, Air-Force, and Army bases to the tune of billions of dollars. This is to say nothing of the demonstrated willingness of the US to apply its military resources in China's neighborhood, such as in the Korean War and the holocaustal Vietnam War wherein millions died.  These both took place within living Chinese memory.  Taking place now: "The US Navy has begun to deploy more forces in the Pacific," The Economist reports.

A brief study into the history of China's relations with its neighbors and the West reveals fact after fact lending support to the attitude of indignation in China towards the US and Europe.  The Economist article asserts that a number of things will help to ease the transition.  These range from the briefly insightful to the absurd.  It suggests that "America and China need rules for disputes" and "America and China should try to work multilaterally (in Asia)"  But in the absence of demonstrated trust and mutual respect, rules and agreements will be broken, and multilateral discussions and organisations will be but another battlefield for diplomatic and economic clout.  The article comes close to the spirit of the answer to this terrifying question when it posits that "If America wants to bind China to the rules-based liberal order it promotes, it needs to stick to the rules itself."  This is a remarkable admission by the Economist of the US's hypocrisy.

Moreso, such is a tacit recognition that the current Empire must lead by example and act under the principles that it can only hope China will abide by once it overtakes the seat of global power.  The US must do much more to value economic equality, education and democracy at home, and respect the sovereignty and human rights of those abroad.  It must do more to promote freedom and peace for all nations; Not attempt to impose them as a pretext to military intervention in places such as Iraq and Afghanistan.  The US must make difficult decisions as to how to unwind the relationship between its military and its economy; these are understood in China and other quarters as so entwined that the US must perpetuate conflict and imperialism in order to survive.  China will never see in the US plutocracy a credible partner in any undertaking, but only a group of self-serving aristocrats guided by the ethics of capitalism, greed and consolidation.  It may be possible to avoid a conventional military conflict between China and the US during this great hegemonic shift if the US recognises China's military and economic clout and begins to bargain away its stack of chips in Taiwan, the South China Sea, Japan, Korea etc.  But such is likely to promote the further moulding of China into a militarist/imperialist economy whereby all of the fears of an opaque and unaccountable Chinese world leadership will be realised. Such will not lead to any type of greater peace.

The only chance for a true and peaceful resolution of the conflicting interests of China and the US to come about is by a change in those very interests:  Away from militaristic/economic dominion and global paternalism which sows discord, misery and disenfranchisement everywhere; toward finally abiding by the principles which the people of the West have always espoused: Peace, human rights and equality of opportunity for everyone everywhere.  Continued posturing by the US as the world's indomitable military and economic power requires China to assert itself globally through economic control of resources and military capability.  A graduation by the West to a higher moral ground; by a recognition of reality and a genuine redress of the ills of its own and society abroad, through education and democratic change; only these changes can compell lasting peace and inspire in China the changes it requires to be a more just and accountable world power. 


Read the Economist Article:
http://www.economist.com/node/17629709

Read more about it:
http://www.taipeitimes.com/News/editorials/archives/2010/09/27/2003483897
http://www.opendemocracy.net/democracy-china/nationalism_3456.jsp

Monday, January 10, 2011

Switzerland: Swiss Franc -ly Under Attack

Separate reports this week in the Swiss newspaper Neue Zuericher Zeitung (NZZ) are highlighting the difficult choices Switzerland, and by extension other nations, are facing in the continued onslaught of effective currency devaluation by US and Eurozone officials. The Greenback and the Euro have fallen significantly against the Franc and other currencies in the past years as their governments and central banks have created a glut of supply; by loosening monetary policy, lowering interest rates and creating massive amounts of new debt to bail out ailing banks, businesses and governments.   The choices for nations such as Switzerland are clear:  Reduce living standards and income values through inflation, or see a massive outflow of jobs and industry from their borders. 

Swiss Banknotes by kalleboo
The Swiss National Bank (SNB) has announced losses of 8.5bil Swiss Francs in the first 3 quarters of 2010, resulting from their foreign exchange interventions intended to curb the effect of the inflating Euro and Greenback on their economy.  These losses stem from the SNB's massive selling of Swiss Francs and purchasing of Euros in order to simultaneously increase market supply of Swiss Francs to lower it's exchange rate; and increase competition in the Euro-dollar market to help support/increase its value.  Despite these efforts and the losses thereof, the Eur/Chf (Euro/Swiss Franc) exchange rate has fallen from late 2007 highs of 1.68 to current levels of 1.25.  This has had a severe effect on Swiss industry, most of whom must repatriate sales made in the Eurozone in order to book profits.  This peak to trough fall represents a loss to Swiss exporters of 0.43 Chf in every dollar they earn, or roughly 0.25 in aggregate terms.

Such extreme cuts to profits have Swiss industry chiefs remarking that in current conditions they cannot consider new hiring or expanding production in Switzerland, and making controversial threats to move jobs out of Switzerland and into the Eurozone, where wages have dropped along with the Euro relative to the Swiss Franc.  Retailers are also complaining that more and more Swiss shoppers are travelling the short distance to make their purchases accross the border, which is not far from any point in the small landlocked Alpine country.  The tourism industry is also feeling the pinch, as it is more expensive for Europeans to buy Francs.  Some doubt the long term viability of small and mid-sized businesses in Switzerland if the Franc's value to the Euro cannot be stabilised above 1.30.  The NZZ this week specifically quoted Georges Hayek, chief of Swatch-Group and Hans Hess, president of Swissmem, an association representing the mechanical and electrical engineering industry, as calling for government intervention in this regard.

However, such government intervention would in all cases amount to a rapid inflation of the Swiss currency.  This would cause prices of goods to rise generally, affecting the value and purchasing power of all Swiss incomes, from wage-earners to business owners to pensioners.  The Swiss authorities thus face a double-edged sword:  To take action is to lower living standards for all Swiss residents and cut the value of savings; to hold firm is to risk a general flight of industry and jobs and support a loss of value in local stock market investments.  In all cases jobs, savings and investments are threatened.  This dilemma is at the root of the murmurrings of currency war surrounding the G20 meetings in Seoul, which saw the US and Europe insisting that China allow the yuan to rise, and China along with Brasil, Korea and a host of other nations from across the globe complaining of the ill-effects to their economies caused by the effective devaluatoin of the Euro and Dollar by Western central banking authorities. 

Just as the European central bank (ECB) was forced to bail out Greece and Ireland by helping to create new money, and is currently fighting to prop up the Portuguese national budget with bond purchases, so are Federal authorities in the US now facing calls to bail out hopelessly indebted states and municipalities.  The Wall Street Journal reports that Federal Reserve chairman Bernanke has scuttled such talk by pointing out that new rules under the Dodd-Frank laws enacted by the federal government last year limit the fed`s ability to intervene should states or municipalities go into default/bankruptcy.  Such issues in Europe and America will, regardless of how they are addressed, create more instability in foreign exchange markets, to the detriment of economies outside their borders; from first world economies such as Switzerland, Canada and Japan, down to China, Brasil, India and all others dependent on the global economic model. 

Read more:

German Language Sources:
http://www.nzz.ch/nachrichten/wirtschaft/aktuell/tiefer_euro_gefaehrdet_wohlstand_1.8958738.html
http://www.nzz.ch/nachrichten/politik/schweiz/schweiz_nationalbank_verlust_85_milliarden_franken_2010_1.8356119.html

Other English Language Reports on the Swiss Franc and US Debt:
http://online.wsj.com/article/SB10001424052748704739504576067602380461160.html
http://online.wsj.com/article/BT-CO-20101112-701368.html
http://www.swissinfo.ch/eng/specials/swiss_franc/Strong_franc_continues_to_haunt_Swiss_economy.html?cid=17955460

Friday, January 7, 2011

British Ethics: A Dark Comedy

North Sea Oil Drilling by crawfish head
Yesterday, January 6th 2011, the UK Parliamentary committee appointed to look into whether the government should enact a moratorium on deep-water drilling in the wake of the Gulf of Mexico-BP oil disaster, has ruled out the need for a halt to new projects before new regulations can be put in place.  In an absurd and stunning turn of logic, the report discusses the myriad of reasons why such a moratorium is necessary, particularly in the UK, before concluding that it is not necessary.  This freshman coalition government of the UK, by this report and an already long list of betrayals of the public interest, is demonstrating to statesmen and governments everywhere that constituents are not united in their willingness to defend their rights in the face of blatant misrepresentations and misallocations of public offices and resources.

The report makes light that any clean up of a spill in the North Sea, whose conditions are much less calm than in the Gulf of Mexico, would be infinitely more difficult.  The report suggests a number of regulations which should be enacted, both to safeguard against possible accidents as well as to prepare in the event of such accidents; also the report demonstrates how British law is murky as to who could be held legally accountable in the event of a spill.  However, without imposing a moratorium, there is little impetus for government and business to work together to put such regulations in place.  Companies such as BP and Chevron have been moving ahead with their projects in the North Sea with approvals and licences, furnished by Cameron's coalition government even while the BP well in the Gulf of Mexico was still hemorrhaging oil.

Indeed, a veritably horrifying dark comedy is unfolding in the UK, which makes a mockery of ethics, representative government, and makes plain the arrogance of power.  David Cameron's pledge to make the new coalition government the "greenest government ever" seems as conniving and opportunistic a statement as the installation on his home of a wind turbine, machines which he previously cynically referred to as "bird-blenders." 


BP Deepwater Horizon Gulf Oil Disaster, by US Coast Guard
First, there are the appointments made by the incoming "austerity" Prime Minister Cameron who came to office after the Gulf Oil disaster began.  Johann Hari reports that "The Prime Minister thought the best person to be his 'Cuts Tsar' was John Browne... he was the head of BP, until he was forced to resign in 2007 because he was shown to have lied in court testimony... Browne arrived at BP promising to do exactly what Cameron is promising to do to the British state... He said you could slice out great chunks of staff and provide the same standard of service.  The workers he sacked included BP's specialist engineers... As the investigative reporter Tom Bower has written: 'Hundreds were fired and replaced by subcontractors... Browne ditched BP's in-house expertise'...  The consequences were soon clear. BP's Texas City refinery blew up, killing 15 workers, and the official investigation found that BP 'tolerated serious deviations from safe operating practices, and apparent complacency toward serious safety process risks at each refinery.' Browne carried on cutting anyway, in a process Bower argues 'led directly to the current catastrophe' (Gulf spill)... the Prime Minister believes the best person to oversee his cuts agenda is an oilman whose last cuts destroyed the Gulf of Mexico... It's an inspiring model to apply to our schools, hospitals, and transport."

There is the appointment of oilman Tim Eggar as a government liaison to oil companies.  Eggar's recommendations helped shape budgetary and energy policy which, in spite of Cameron's public stance of fiscal restraint and green government, gave major tax breaks to oil companies and incentives to continued expansion of exploration and operations in the North Sea. 

Among other appointments, there is Conservative Cameron's appointment of Lib-Dem MP Vince Cable to 'Secretary of State for Business, Innovation and Skills' as an ostensible gesture of unity in the formation of a coalition government between the Conservative and Lib-Dem parties.  Cable is a former Shell executive from back in the day when Shell was working with the Nigerian military to dispossess landholders and murder dissident leaders such as Ken Saro-Wiwa.  Recently he boldly stated to UK students that his Lib-Dems "didn't break a promise" in the wake of the trebling of their university fees, in spite of a Lib-Dem manifesto which plainly committed the Lib-Dems to explicitly opposing any changes to or increases of fees.  Cable's portfolio and ministry was directly responsible for the new fee structure, and while feeling the public heat before the vote on the matter he insinuated he might abstain from voting in parliament on the new fees - which itself would still have been a denial of his party's platform to oppose changes to the fee structure - he went ahead and voted in favor of raising tuitions anyway.  He is further chameleonic in his self re-branding as a left-wing politician, after years of supporting economic liberalisation in the form of proposals to privatise UK health insurance as well as Tony Blair's liberalisation of financial markets, which in turn helped to create bank failures and housing bubbles in the UK. 


Sherwood Forest, by Puptoes74
Perhaps bolder than all these political maneuverings is the decision by Cameron's government to put all of Britain's forests up for sale, a move that has already seen private interests move in to purchase and fence in forests previously accessible to the public.  Only a few regulatory changes stand in the way of these National treasures being razed to the ground for timber, development and a quick profit.  Indeed, there seems little other purpose than that to purchasing the land, which in its current form can provide no income for the purchasers to recoup their investment.  The irony of the famous Nottingham/Sherwood Forest being up for sale has not been lost on British journalists, who wonder aloud how Robin-Hood would react to having his hideout sold out from under him.

Those following Cameron's government more closely would point out further betrayals, not just of single promises, but of the cornerstones of his party's and supporter's political ethics:  Halting any increases to payments to the EU in a time of austerity; Protecting pensioners from increased costs of living; the list goes on.  He has baldly favored his political and business allies at the expense of his honor and credibility among the votership.  In spite of this, is it possible he believes he could win a second election?


English "Bird=blender" c. 1820, by Martin Pettitt
The actions of the coalition government in the UK have been a bold rejection of the fear of being held accountable.  They evidently know that they can say one thing plainly and just as plainly do the opposite.  They apparently believe that the public will accept the Orwellian truth that 2 + 2 = 5.  People of free will and democratic tendencies the world over have much to fear from David Cameron's government, who by example is, so far, demonstrating to the unscrupulous and unethical everywhere that people at large will mainly fail to defend themselves.  Or perhaps it was he who inherited this knowledge from George Bush?  Of course, lies and duplicity are nothing new to politics.  But is it possible that it is such the norm, that the votership, still engaged at rates around 50% in English speaking nations, not only accepts this reality, but are more and more willing to cooperate with it?  Those who are not can certainly tell it to the riot police in the streets.


Read more about

David Cameron's appointments and environmental policy:
http://www.johannhari.com/2010/07/15/now-david-cameron-shafts-the-environment

UK parliament's report on deepwater drilling:
http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/8376186

UK forests up for sale:
http://www.independent.co.uk/opinion/commentators/johann-hari/johann-hari-for-sale--camerons-green-credentials-2177929.html

Vince Cable:
http://www.newstatesman.com/uk-politics/2009/09/mehdi-hasan

Tunisia and Algeria: North African States of Unrest

Reports of civil unrest and suicidal protests in Algeria and Tunisia these past two weeks are highlighting the precarious conditions under which many people across the world live: on the verge of starvation, hopelessly unemployed and frequently homeless.  For decades these two neighboring nations have been considered relatively stable, if authoritarian African countries; with education and other economic indicators of prosperity on the rise.  However, more recently circumstances for Algerians and Tunisians have taken a turn for the worse, and a generation of youth has taken to the streets, demanding the right to opportunity, employment and price stability.

President Zine el Abidine Ben Ali
Perhaps the most shocking story emanating so far from North Africa is the story of a 26-year-old Tunisian graduate student, Mohammed Bouazizi, who died two days ago from his injuries after setting himself on fire on December 17th in an act of suicidal protest.  Bouazizi, unable to find any meaningful work, had taken to selling fruits and vegetables out of a cart to earn money, until police confiscated his cart for lacking a vendor's permit.  His hopeless decision to douse himself in gasoline and light himself on fire has been a call to arms for thousands of disenfranchised Tunisians, especially educated youths, who are facing the same circumstances as Bouazizi, and who are now protesting daily against a government which normally maintains strict social control through violent coercion.  Bouazizi's funeral procession was attended by an estimated 5,000 people.

There has been at least one other suicide-protest, two protesters were shot on Christmas-eve, and thousands of lawyers have gone on strike in solidarity with other lawyers who have been beaten, arrested and tortured by Tunisian police.  Thousands of protesters are in the streets daily across the country.  The Tunisian Federation of Labour Unions has seen their organised protests quashed by violent police.  The Tunisian president Ben Ali, who has been president for 23 years and is usually 're-elected' with a 95%+ majority, has addressed the nation on television, saying protests are unacceptable and are bad for the economy, and that the law will be applied firmly.

The situation in Algeria is roughly the same.  Among the youth, hopes for a stable and prosperous future have fallen to a critical level, with food prices rising 20-30% in the past few days.  Fuel and material prices are also rising sharply.  Many Algerians cannot afford such increases in daily necessities as the cost of housing is so high:  In 2003 an earthquake destroyed roughly one-million apartment units which have yet to be replaced, despite promises by the president and government.  This lack of supply has caused the cost of available housing to rise significantly and has led to homelessness and crowded residences.  According to the IMF, 75% of Algerians are under the age of 30, of whom 20% are unemployed.  Actual unemployment rates are higher, and among the employed, under-employment and low wages are a major problem with so many Algerians competing for jobs.  There has been looting of food outlets and stores closing in shopping districts.

It remains to be seen how authorities will ultimately deal with the growing riots and civil unrest, in both Tunisia and Algeria.  While the government of Tunisia has a large police force, and Algeria a well-armed and experienced anti-terrorism apparatus, neither government has faced such a spontaneous and popular uprising, according to many sources.  Such is the fate of nations who fail to redress social inequality, poverty, and despair amongst their people.


This short video by essiklibon taken from Youtube shows a typical protest in the tight streets of Tunisian cities.

Please read more about the current situation in Algeria and Tunisia here:




Tuesday, January 4, 2011

Panem et Circenses South African Style

USA v Algeria, 2010 World Cup by jasonwhat
A recent Sports Illustrated article, World Cup's Empty Legacy, reports on the state of South Africa's sports infrastructure several months after this summer's final.  While the 2010 World Cup was as much a success as any other in bringing together people from all corners of the globe, the piece helps to highlight a comedy of errors and lack of foresight which may in the end taint the image of FIFA and the other political bodies that organized the competition.   Further study into the issue turns up questions as to deep corruption and even murder.

In planning the construction of new stadiums, it is evident there was little consultation with local sports organisations who would in future be potential clients of the new facilities.  Rugby teams have avoided moving out of their smaller venues to these larger stadiums for a variety of predictable economic reasons, while cricket teams cannot even begin to contemplate moving, as in a literally monumental demonstration of ineptitude, the new stadiums were designed and built so that the dimensions of a cricket field will not fit within the new stadium's playing areas.  Cricket and Rugby are both more commercially successful in South Africa than soccer; a sport whose local teams count spectators in the hundreds, rather than the tens-of-thousands required to fill the new and refurbished venues.  Many in South Africa are wondering how it is possible that these stadiums sit empty most nights, when $1.3 billion was spent alone on upgrading and building them.

The Cape Town Stadium was built at Green Point on the site of an older much smaller stadium, after much controversy.  Green Point is a middle-class suburb, whose cleanliness and relative modernity would make it more attractive to tourists attending the World Cup; however, many Green-Point residents opposed the building, and a wider group of locals wondered aloud why a soccer stadium would not be built much closer to the poorer neighborhoods which house Cape Town's actual soccer fans.  The SI article, printed November 22, 2010, reveals that only 3 events have been held at the stadium since the close of the World Cup.  Furthermore, it states that "the company due to take over the stadium's 30-year lease on Nov. 1 pulled out of the deal, forcing the city to cover maintenance costs of around $6 million a year."

The reality of empty stadiums unable to cover the costs of their own maintenance is not exclusive to Cape Town.  More than one stadium was built in rural areas whose populations will never support attendance of multiple thousands for regular domestic league sports events.  South Africans, half of whom according to the UK paper The Independent survive on an average of 130 pounds per month, are today largely unaffected by their government's spending spree on the world's biggest party, in spite of how jubilant they may have been portrayed by international media during the event.  The workers who built the stadiums, who were typically paid 19 pounds per week, must be wondering where the $1.3billion in stadium construction and refurbishment actually went.  While the South African townships and taxpayers are left with the construction debts and maintenance costs of the stadiums, FIFA had bagged $1.6billion from advertising and other sources before the tournament even began, profits which the South African government treasury was excluded from sharing in.  Local activists have accused FIFA, South African officials, and contractors of mafia style collusion in bullying opponents and municipal representatives toward their ends, with the murder of whistleblower Jimmy Mohlala being a prime example; a web search of this name reveals innumerable theories as to the sponsors of his assassination.

Politicians and FIFA representatives promised an event which would help to unify Africa and the world, which would boost Africa's economy and help to modernize and make South Africa a destination of international interest.  Instead the story of the logistics of the 2010 World Cup has, for many, reinforced the image of African leaders as corrupt and detached from their people, as well as the stereotype that rich white Europeans have no interest in Africa beyond economic exploitation.  With Russia and Qatar, two nations badly lacking in infrastructure and sports facilities, recently named as hosts for upcoming World Cups amid allegations of bribery and corrupt vote trading, the question remains:  Is the World Cup foremost a celebration of the world's most popular and transcending sport?  Or does its existence depend on the ability of certain elites to enrich themselves cynically at the expense of fans who truly abide by the ideals of harmony, unity and fair-play?


Google search for Jimmy Mohlala:
http://www.google.ca/#hl=en&expIds=17259,27757&xhr=t&q=jimmy+mohlala&cp=9&pf=p&sclient=psy&aq=0&aqi=&aql=&oq=jimmy+moh&gs_rfai=&pbx=1&fp=2c0b2ef780091f9e

Sports Illustrated World Cup's Empty Legacy article:
http://sportsillustrated.cnn.com/vault/article/magazine/MAG1177591/index.htm

Video:
http://www.youtube.com/watch?v=ibAthe-_5fI

More links:
http://www.independent.co.uk/news/world/africa/south-africas-world-cup-venues-are-white-elephants-1840958.html

http://www.nzherald.co.nz/sport/news/article.cfm?c_id=4&objectid=10650784


http://special.registerguard.com/csp/cms/sites/web/sports/25197365-41/rugby-south-cup-stadiums-africa.csp

http://www.guardian.co.uk/football/2010/jun/13/world-cup-stadiums-empty-seats

http://fourfourtwo.com/news/worldcup2010/40888/default.aspx

http://2010.mg.co.za/article/2010-05-14-no-one-wants-to-air-2010-documentary