Thursday, January 29, 2009

Doctrines of devils



1 Timothy 4:1-3

1Now the Spirit speaketh expressly, that in the latter times some shall depart from the faith, giving heed to seducing spirits, and doctrines of devils;
2Speaking lies in hypocrisy; having their conscience seared with a hot iron;
3Forbidding to marry, and commanding to abstain from meats, which God hath created to be received with thanksgiving of them which believe and know the truth.

Wednesday, January 28, 2009

Global crisis politics - A Davos debate with Nouriel Roubini and Ian Bremmer


January 28th, 2009


As governments grapple with the global crisis, politics has taken on central importance in determining the course of the world economy — and political risk is more significant than ever.

Two leading experts on the financial crisis and its political dimensions — Nouriel Roubini and Ian Bremmer — gave exclusive answers this week to Reuters questions on the key risks for 2009 and beyond, and the countries to watch.

Roubini is professor at the Stern School, New York University and chairman of economic forecasting consultancy RGE Monitor. He is widely credited as one of the few leading economists to forecast the onset of the crisis and its implications. Bremmer is president of political risk consultancy Eurasia group, and co-author of the forthcoming book “”The Fat Tail: The Power of Political Knowledge for Strategic Investing”

In which countries do political and economic risks intersect most ominously in 2009?

Bremmer - I would start with the United States. How U.S. policymakers respond to the meltdown of the U.S. economy hugely affects both the global financial crisis itself and much of the associated political risk. The politics are especially worrisome because the new Congress will likely wrestle with the White House for control in several key policy areas.

In Congress, members of both political parties have complained that the legislative branch ceded too much policy authority to the executive branch over the past eight years. The new Congress wants that power back. The Democratic leadership now enjoys large majorities in both the House (257-178) and the Senate (probably 59-41). Feeling empowered, even Democratic senior lawmakers won’t always wait on the inexperienced young president to set the agenda. That dynamic creates even greater risks than usual that policy will become a product of political horse-trading rather than coherent economic analysis.

Elsewhere, the economic and the political fronts are colliding to generate turmoil and risk. In Russia, the financial crisis has slowed the economy and put downward pressure on the ruble, reducing the purchasing power of ordinary Russians. The government has had to spend down significant amounts of its considerable financial reserves. There is anxiety about the health of Russian banks. Prime Minister Putin and President Medvedev remain popular and fully in charge — for now.

But job losses in key industries and factory closures in single-industry towns could push unemployed workers into the streets provoking a showdown with local authorities. That could force the Russian government into domestic repression to maintain social order. Russian foreign policy has also become more aggressive in recent months. The recent stand-off with Ukraine over natural gas exports-and Russia’s seeming indifference to the damage that conflict has done to its reputation as a reliable commercial partner for Europe-demonstrate that Moscow continues to pursue geopolitical interests at the expense, if necessary, of its economic well-being.

In Ukraine, political and economic risks exacerbate one another. Political rivalries among President Viktor Yushchenko, Prime Minister Yulia Tymoshenko, and opposition leader Viktor Yanukovych have produced policy paralysis on all but the most urgent of economic problems. The damage inflicted by the global financial crisis on Ukraine’s real economy further sharpens this political conflict. There are fewer customers for Ukraine’s steel exports, a key source of government revenue. The slowdown in production and a spike in unemployment have only intensified the blame-game now burdening Ukrainian politics. In Turkey, too, political squabbles make coherent and effective economic policy more difficult. The deepening political conflict between the ruling AKP (a moderate religious party) and determined secularist elites within the business community, the media, and the military has prevented the government from pursuing the economic reforms that might ease the country’s long-term dependence on the International Monetary Fund.

Roubini - The U.S. is experiencing its worst financial crisis since the Great Depression and its most severe recession in decades: a severe housing bust is entering its fourth year of decline and there is no bottom in sight. The recession will last at least 24 months (December 2009) and the recovery may be so weak, and growth sub-par until 2011, that it will feel like a recession even once the economy will be technically out of it by 2010. The banking system is effectively insolvent, as credit losses will swell above $3 trillion and fiscal deficits above $1 trillion loom for the next 2-3 years.

A weakened U.S. economy and financial system may not be able to remain the leader of the world and may move towards trade and financial protectionism. We’re all aware that foreign actors have financed most of this debt over the past several years. During the 1980s, the U.S. also faced the burden of twin deficits, but relied on financing from key strategic partners like Japan and Germany. This time, the situation is more worrisome because today’s financing comes not from U.S. allies, but from strategic rivals like Russia, China and a number of relatively unstable petro-states. This leaves the U.S. perilously dependent on the kindness of strangers.

A financial crisis and recession that may turn out to be as severe in the EU will put strains on the economic and monetary union in Europe. Talk of a break-up — in a matter of years — of the monetary union, as its weakest links (Spain, Portugal, Italy and Greece) are unable to implement structural reforms to restore growth, will weaken any further drive towards a political union in Europe.

The most severe and synchronized global recession in decades — both in advanced economies and emerging markets — will lead to political stress, turmoil and even violence in some emerging market economies. Some — but not all — of the emerging markets under financial stress may experience outright financial crises (a combination of currency crises, banking crises, sovereign debt crises). These include Latvia, Estonia, Lithuania, Hungary, Romania, Bulgaria, Turkey, Belarus, Ukraine and Russia in emerging Europe; Iran, Pakistan, Indonesia and even South Korea in Asia; Venezuela, Argentina, Ecuador and possibly Mexico in Latin America. Of these countries, those where the geopolitical and domestic political risks are more serious in 2009 are Turkey, Ukraine, Russia, Venezuela, Mexico Iran, Pakistan.

An open question is whether — with oil prices remaining very low in the $30-40 range — the unstable petro-states Venezuela, Iran, Russia) will become more unstable or more malleable. While low oil prices may lead to economic and financial hardship the authorities may react to such economic weakness with more aggressive foreign policies.

Conversely, which countries or regions will see a relatively benign political and economic risk environment?

Roubini - This is the first globally synchronized recession and there are very few places to hide as the forces of recoupling shatter the myth of decoupling: first markets and then real economies have become almost perfectly correlated. Among the BRICs, Brazil and India are less affected than Russia and China, but even Brazil will suffer from falling commodity prices, shrinking export markets and an increase in investors’ risk aversion; thus growth may be barely positive.

India depends less than China on global trade flows, but it depends more on capital flows to finance a large current account deficit, and its’ banking system financed a credit boom with foreign liquidity that is now drying up.

A hard landing in Russia is unavoidable with growth being sharply negative (-3 percent or worse) if oil prices average $40 a barrel this year. For a country like China that needs a growth rate close to 10 percent to move 10 million poor rural farmers every year to the modern urban industrial sector, a drop to 5 percent growth or below (a most likely outcome) is effectively a hard landing. Since the legitimacy of the Communist Party depends on achieving high growth, I believe the hard landing that China will experience this year will have political consequences. Even when growth was 10 percent plus China had over 70,000 mass protests every year according to official records; with growth in the hard landing territory (actually likely negative in Q4 of 2008 and through the middle of 2009) protests will increase, especially as millions of migrant workers return to cities after the Chinese New Year to find that there are no jobs, and as millions of university graduate discover a challenging job market. So while the risk of a political revolution is limited, the more severe the hard landing, the more likely is the chance that the anger of the masses is converted towards the domestic authorities, rather than being channeled in a nationalistic and anti-foreign direction.

Bremmer - I would argue that China will remain politically stable throughout 2009, despite having seen tens of thousands of large-scale protests in recent years. But social unrest usually targets local officials and companies blamed for corruption, land expropriations, environmental problems and other local grievances. Very few of these protests target the Chinese Communist Party elite. Rather, many Chinese credit the Party for engineering decades of explosive economic growth and an ever-rising standard of living. The triumphal pageantry of last summer’s Beijing Olympic Games was expertly produced by the Party leadership, creating a focal point for a strong surge in Chinese national pride. The party has built a large stockpile of domestic goodwill over the past three decades. Toughening economic times will erode some of that credit, but the reserves are probably too deep for the Chinese government to face a dangerous large-scale domestic challenge to civil order in 2009.

Despite security worries, serious tensions in its relations with Pakistan and the uncertainties of an election season, India remains quite stable politically. The same is true for Brazil, where President Luis Inacio Lula da Silva has helped build a consensus across the political left in favor of relatively responsible macroeconomic policy. The Persian Gulf States remain both politically stable and, with the partial exception of Dubai, quite healthy economically.

How big a role do geopolitical factors play in driving global markets? And can their market impact ever be forecast with any degree of accuracy?

Bremmer - Sometimes the impact of geopolitical factors is substantial and at other times, it is more modest. But in the broadest context, we’re entering a period in which political risk will matter more for the markets than in the recent past.

Globally, today’s leading multinational institutions — the UN Security Council, the IMF, the World Bank, etc — no longer reflect the true balance of political and economic power in the world. Leaders of the G7 group of leading industrialized nations know this. That’s why the first attempt at a coordinated response to the global financial crisis came from the G20, a more diverse group that better reflects today’s international order, offering hope that its response that will win broader international acceptance. The problem with the G20, however, is that consensus is nearly impossible. Getting seven people to agree on something important is one thing. Getting 20 to agree is much more difficult — especially when they have different value systems.

We are moving away from a system in which the United States plays a dominant political and economic role toward a non-polar world order. But the leading emerging powers are reluctant to accept the burdens that come with a greater global role. So, there will be even less international cooperation on global issues, like climate change and proliferation, and fewer international fora able to arbitrate disputes.

During 2009, political risk is especially dangerous because of the intense focus on the global financial crisis. Distracted markets are less likely to price in the risks linked to the international conflict over Iran’s nuclear program, dangerous instability in Pakistan, Russia’s assertive, even aggressive, foreign policy, and possible large-scale unrest in Iraq as various militia groups and others rush to fill the vacuum left by departing U.S. troops and to control that country’s oil.

The market impact of a particular risk is always difficult to forecast with complete confidence because there are so many relevant variables. But just as oil prices rise or fall in response to political events, a particular election outcome, social unrest, or a surprise policy reversal can add substantial upward or downward pressure on equities and currencies around the world.

Historically, political risk has been more relevant in emerging markets, which I would define as any country in which politics matters at least as much as economics for the performance of markets. But it’s notable this year that, by this definition, the United States is behaving like an emerging market. Consider all of the various political considerations that go into deciding how (and whether) to bail out U.S. automakers or how best to design an economic stimulus package.

Roubini - Geopolitical shocks can — at times- - have a significant market impact, especially oil price shocks. Indeed the global recessions of 1974-75, 1980-82 and 1990-91 followed three oil price shocks (the Yom Kippur war, the Iranian revolution and the Iraqi invasion of Kuwait); and even the 2001 recession — driven by the tech bust — was in part aggravated by the doubling in oil prices following the second Palestinian intifada. This year, demand fundamentals should keep prices lower, but two risks remain: a military conflict between Israel and Iran over nuclear proliferation, and a successful attempt by OPEC to restrict oil production. The former scenario would be much more disruptive as a stagflationary oil price shock is the last thing needed by a world in the most severe recession in decades; but even the latter scenario could spike oil well into the $70s range and become an additional drag to negative global growth.

Geopolitical risks would also become more severe if a U-shaped global recession were to mutate — because of mistaken policy responses — into an L-shaped stag-deflation (a deadly combination of economic stagnation, recession and deflation). After all, the stock market crash of 1929 turned into a Great Depression because of poor monetary, banking and fiscal responses. When the Depression became global, trade wars — starting with the Smoot-Hawley tariff — further contracted global exports and imports, capital controls became pervasive and defaults in emerging markets became the norm. Some similar risks are emerging today as countries become more protectionist and impose capital controls. Ecuador already defaulted on its foreign debt and others are teetering on the verge of a sovereign debt crisis. In the 1930s, the botched policy response and severe depression led to the rise of nationalistic, militaristic and aggressive regimes in Italy, Germany, Spain, Japan to name a few. The final result was World War II.

Today, the lessons of the Great Depression have hopefully been learned and a destabilizing L-shaped global stag-deflationary slump should be avoided. But monetary easing is weak in some regions and is less effective in the presence of insolvency/credit problems. Fiscal stimulus is constrained in many countries by previous high deficits and debts and cleaning up and bailing out the financial system is constrained by the “too-big-to-save” banks (i.e. losses in large, internationally active banks are much larger than the resources of small open economies to rescue them). And widespread and disorderly defaults by households, firms and financial institutions may follow a severe debt deflation.

Can political risk ever be quantified and ‘priced in’ in asset prices and markets? Or has the global crisis shown that markets are not capable of correctly pricing complex risk?

Bremmer - The impact of the war in Iraq was priced in. Markets rose once the invasion began. But we can’t say the same for Iran this year. The context is different, because the threats posed in the Iran case are less obvious and more difficult to predict. A vast majority of the analysts on Wall Street have backgrounds in economics. They price in political risk less effectively than economic risk.

Roubini - The global financial crisis — missed by most analysts — shows that most forecasters are poor at pricing in economic/financial risks, let alone geopolitical ones. In normal times, markets are poor at pricing low probability, fat tail risks (black swan events), but the recent global financial crisis was a white swan event, as it followed a gradual build-up of predictable financial vulnerabilities that were ignored by most. But when the proverbial financial or geopolitical shocks hit,
the market over-reaction can become severe, as fear follows greed and markets tend to react in extremely risk-averse ways, replacing the denial and indulgence of good times with the extreme risk-aversion of bad times.

Is there likely to be a trend toward greater protectionism and nationalist economic policies around the world in 2009? What will be the implications for the global economy?

Roubini - Protectionist pressure will become more severe if the global economic slump is more protracted and deep. Certainly Doha is dead as multi-lateral trade liberalisation is impossible. Protectionist tariff actions have already started to emerge in places such as Russia and India and they may spread further. Trade-distorting subsidies are more likely than tariffs (see the rescue of Big Auto in the US). Currency tensions — for example between the U.S. and China — could escalate into trade wars. One also needs to worry about financial protectionism as a backlash against sovereign wealth funds and even FDI that may take place.

The new U.S. administration is dominated by pro-globalisation figures (such as Tim Geithner and Larry Summers), but Obama’s choice for Labor Secretary and U.S. Trade Representative, and the ongoing pressures by trade unions, counter-balance these free-trade leaning forces. And the fact that the new Treasury Secretary Geithner used the dirty M-word against China points to the risk that the fight about how much the RMB should further appreciate will turn into a trade war. Certainly, a China worried about the collapse of its exports and a hard landing may be tempted to have the RMB depreciate, or certainly not appreciate further.

Bremmer - There will be a heavy nationalist influence on economic policies globally this year because the overwhelming priority among political players will be to stimulate economies, growth and job creation. These are “national” projects. Governments will appeal to national pride to maintain domestic support. In Iceland, politicians are calling for a return to local traditions of strength and self reliance. In Russia, economic policy is intended to maintain Russia’s new strength. In America, President Obama is calling for shared sacrifice and an “era of responsibility”. We will see austerity programs all over the world this year. Austerity breeds populism, but populism can easily breed protectionism in any country with significant exposure to international markets. If one country finds political advantage in throwing up a wall to protect a vulnerable industry or economic sector, other governments will have a political incentive and justification to do the same. The West has preached the virtues of free trade and free markets for years. Now, many in the developing world can cite massive state spending by Americans and Europeans to justify kick-starting their own economies, including by protectionist measures.All that said, worries about global trade will be secondary in 2009 to other more pressing domestic questions. The risk of a protectionist wave is a longer-term problem.

Where is the oil price going in 2009, and what will be the political and social consequences?

Bremmer - In July, oil hit $147 per barrel. We got “drill baby drill” and a sense of urgency to investment in alternative fuels. Oil has now fallen to $44 per barrel. That undermines much of the political momentum behind both. It’s also bad news for oil producing states like Venezuela that haven’t handled their account balances very well. It adds pressure on a Russian government that finds itself drawing heavily on the revenue amassed as reserves over the past six years. So-called stabilization funds may yet be used for actual “stabilization”. High inflation, unemployment and subsidy spending leave Iran in less-than-ideal economic shape, but its government has done a much better job than Venezuela of maintaining oil output levels. But we can’t remain bullish on lower prices indefinitely. We see a lack of investment in infrastructure and exploitation in many countries. There are continuing geopolitical tensions in the Persian Gulf, the Caspian, West Africa, and other hotspots. Output is likely to fall over the longer term in Mexico, Venezuela, Russia, and elsewhere.

Roubini - In the short run, the demand destruction in the global demand for oil will keep prices low and hurt a bunch of unstable petro-states. These petro-states should become less aggressive facing fiscal and financial pressures; but some may be tempted to convert the domestic anger triggered by economic malaise into an aggressive foreign policy stance. Over the medium term, oil prices will sharply rise again once the global economy recovers. The return to potential growth will imply rapidly rising demand from urbanizing and industrializing China, India and other emerging markets. Meanwhile, the supply response will be much slower as low prices in the short-run lead to less investment in new capacity. In addition, as peak oil factors take hold, unstable petro-states won’t invest enough in new capacity and even Middle East states will decide it is better to keep more of the limited and finite reserves of oil in the ground for future generations. This suggests the importance — for oil importing countries — to invest in alternative and renewable technologies as a new oil shock looms.

Has the global financial crisis disproved the belief that free markets generally create optimal results and that state intervention in the economy should be kept to a minimum?

Bremmer - Yes, but it hasn’t proven that large-scale state intervention is an absolute good either. Intelligent moderation is good for both open markets and government investment, but we’re likely to see the pendulum swing way too far this year in the “state intervention” direction. Let’s also remember that many of the bad bets on markets were actually made via sovereign wealth funds—excess pools of capital owned and managed by governments that were created to maximize state return on investment—and, in some cases, political influence.

Roubini – This is not a final crisis of capitalism and market economies. To paraphrase Churchill, market oriented capitalism is the worst economic system apart from the alternative. But the specific brand of Anglo-Saxon, laissez faire, wild-west, free market fundamentalism without prudential supervision and regulation of financial systems has been debunked. Central banks that are usually the lenders of last resort have become the lenders of first and only resort. And the new Keynesian Finance ministries have become the spenders of first and only resort, as private demand – consumption, residential investment, capex spending – is plunging. In financial markets, the laissez faire approach of self-regulation implied no regulation; the reliance on market discipline failed in the frenzy of euphoria and irrational exuberance in good times. Internal risk models failed as the risk takers had the upper hand over the risk managers, and ratings agencies had massive conflicts of interest through being paid by those whom they were supposed to rate. Light-touch regulation failed miserably, as did the reliance on teeth-less principles rather than rules. While the risk that the pendulum may swing too much from self-regulation to excessive regulation is possible, a greater reliance on simple rules and tighter regulation and supervision is necessary to prevent another very costly boom and bust cycle. The financial, fiscal and economic costs of this crisis are so severe that failing to prevent the next virulent one will lead to a severe backlash against globalization, free trade and free capital flows.

The crisis has seen a fundamental reappraisal of risk and a general flight from risky assets. What does this mean for asset prices and markets in countries seen as having high levels of political risk — will they be disproportionally hit?

Bremmer - Some will, yes, though it won’t be clear until the markets start to rebound. Right now everybody’s getting hit because no one is lending. When the markets recover, everyone will recognize the fundamentally unstable places. They’ll be the ones that don’t bounce.

Roubini – Usually the combination of economic and financial vulnerabilities with political risk leads to extreme risk aversion of domestic and foreign investors and over-reaction of asset markets. The financial crises in emerging markets in the 1994-2003 period were all associated with rising political risk (populist governments, political uncertainty, domestic conflict) that led to lower policy credibility and greater trigger-happy behavior from investors.

We’ve seen your assessment of the top risks in 2009. What’s your best guess of the top risks in 2010?

Roubini – The top risk for 2010 is that the painful U-shaped global recession turns into a more severe multi-year L-shaped global stag-deflation. The key factor in determining whether the current U (a mild V-shaped recession is now out of the window) turns into an L is the policy response in the US and abroad. While US authorities seem to get it and are now pursuing aggressive policy responses, the rest of the world is reacting and responding much slower. In the Eurozone, the ECB is behind the curve. The fiscal stimulus is likely to be weak and dealing with the cross-border banking crisis requires international burden sharing of the fiscal costs of bailouts. In emerging markets, monetary response is constrained by high inflation, foreign currency liabilities and the risk of currency crises. The fiscal stimulus is constrained – in some cases – by high fiscal deficits and debt. Financial sector rescues also risk being botched, leading – like Japan in the 1990s – to zombie banks and zombie corporations and households whose debts are not properly restructured, thus exacerbating the credit crunch, the debt deflation and the risk of widespread defaults. Given the global glut of capacity from the overinvestment by China and Asian economies, global deflationary pressures could take hold leading to more persistent and virulent deflationary pressures in the global economy.

Bremmer - From the perspective of global politics, Iraq will likely become more dangerous as noticeably fewer US troops on the ground increase the incentives for the country’s various sects, tribes, and factions to compete for Iraq’s wealth and for control of government—both in Baghdad and in the provinces. China could turn toward deeper protectionism as the political leadership begins to respond to growing public demand in China for rules that favor Chinese firms at the expense of their foreign competitors. Security in Pakistan, Afghanistan, and India will likely remain a front-burner issue.



Source: http://blogs.reuters.com/great-debate/2009/01/28/global-crisis-politics-a-davos-debate-with-nouriel-roubini-and-ian-bremmer/

New York City fears return to 1970s


Tue Jan 27, 2009 3:48pm EST


By Joan Gralla

NEW YORK (Reuters) - While many U.S. cities worry that their economies are deteriorating to the level of the 1930s Great Depression, New York City fears reliving a more recent decade that features strongly in city lore.

The 1970s were a low point in city history as a fiscal crisis almost pushed it into bankruptcy, crime rates soared, and homeless people crowded sidewalks as public services crumbled.

Almost a million people fled New York's Mean Streets during the decade for the safer, more stable suburbs, a population decline that took more than 20 years to reverse.

When discussing the current crisis, Mayor Michael Bloomberg, now seeking a third term, promises that he will not allow the city to return to the darkness of those days, although he stresses that it faces "giant financial problems."

"I know some are concerned that city services will erode," he recently told reporters. "Let me remind you that the city went down that road in the 1970s ... I can just tell you that we are not going to make that mistake again."

But behind the rhetoric, there are signs of a city under growing stress, including a rise in homelessness that's driving more families to shelters and last year's 57 percent spike in bank robberies.

There were 444 bank robberies in 2008 compared with 283 in 2007, according to the city Police Department.

A Bank of America branch in Manhattan near Rockefeller Center said it has posted a sign asking its customers to remove sunglasses, hoods and hats before entering, one of the anti-crime measures the police department recommended.

As city revenues slide with the demise of Wall Street firms, the mayor, an independent, has slashed spending by all agencies and there's more to come.

The budget plan drawn up by New York State Governor David Paterson will cost the city $1.6 billion in cuts and force it to lay off thousands of police officers, firefighters and teachers, Bloomberg warned last week.

The mayor has already said he will cut $3.6 billion, or 6 percent, from next year's $60 billion budget.

SLIDING TAX REVENUE

Wall Street's financial industry is one of the city's biggest taxpayers but it has lost more than $36 billion in the last two years and may eventually shrink its work force by a quarter, the mayor said.

That will deprive the city of billions of dollars in lost tax revenues, including the mini-bonanzas it gets when securities firms pay bonuses every year.

Factoring in layoffs at the many service companies from law firms to shops that rely on Wall Street, the city could lose as many as 243,000 jobs from 2008 to 2010, economists say.

Meanwhile, raising funds has become harder for many states and cities around the nation as the tax-exempt bond market has been caught up in the broader financial market crisis.

Despite its high-credit status as semi-sovereign debt, the $2.7 trillion muni market has lost some of its biggest buyers -- banks, hedge funds and insurers. Many of them have lost money and need cash to shore up their balance sheets.

The collapse of Lehman Brothers and Bear Stearns has returned the muni market to retail investors, its traditional client, but demand has been inconsistent.

Many individuals lost confidence in municipal bond insurers after their top ratings were slashed and were stung by last year's collapse of the auction-rate securities market.

New York City is one of the nation's premier issuers of municipal bonds and although capital markets have not temporarily locked it out as they have California, the city has slashed its average bond sales by a third. So instead of selling $1 billion at once, it now sells just $300 million.

Still, the city can take heart from its experience of previous downturns, according to Harrison Goldin, the Democrat who began his first of four terms as city comptroller in 1974.

New York "has proven time and time again its enormous resiliency," said Goldin, who left office in 1989 and opened a turnaround consulting firm.

"The city, obviously, is looking at a deteriorating economy and eroding revenues, but it has a full handle and grasp on the extent of the problems. As painful and difficult as they may be, it is in a position to act pre-emptively and to avoid ending up in the sewer."

There are more safeguards than before, perhaps most notably in helping the poor get health care. Dr. Unsup Kim of Elmhurst Hospital Center in Queens cited the development of trauma centers and programs for outpatients with chronic diseases as two key developments since he began running the public hospital's surgical department over 30 years ago.

Though narcotics-related violence has fallen and gunshot victims are more likely to survive, thanks to faster ambulatory times and medical advances, gangs can still be troublesome, Kim said. He cited the recent stabbing of an 18-year old in a fight that the patient said involved 20 people.

When the economy bloomed, Bloomberg was the nation's first politician to save money for public retirees' health care.

Monitors praise him for this and for improving high school graduation rates, cutting crime and refusing to sell assets to close budget holes. Investors eventually balked in the 1970s when the city was issuing debt to pay operating expenses.

But Bloomberg is faulted for granting city workers overly generous pay hikes and approving too many real estate developments that have fallen apart in the credit crunch.

Though Wall Street's misdeeds pushed the global economy to the brink, the mayor says the city needs its talent. So he aims to help these workers become entrepreneurs or learn green jobs. That will increase employment faster than pouring money into infrastructure, which is unlikely to offer openings to office workers and clerks, he said.

(Reporting by Joan Gralla; Editing by Jan Paschal)


Source: http://www.reuters.com/article/newsOne/idUSTRE50Q6IH20090127?sp=true

DAVOS-Soros urges U.S. to create "good bank" as aggregator


Wed Jan 28, 2009 10:03am EST


DAVOS, Switzerland, Jan 28 (Reuters) - The United States needs to recapitalise its banks but should consider the creation of a "good bank" when considering how to deal with the toxic assets, hedge fund manager George Soros said on Wednesday.

Speaking to Reuters Television at the World Economic Forum in Davos, Soros said the planned U.S. fiscal stimulus and proposals for creating a "bad bank" to pool banks' bad loans and assets may help ease the economic crisis stateside.

But he said these were "only palliatives".

"They need a thorough reorganisation of the mortgage system and you have replenish the equity of the banks," Soros told Reuters. "That now would require an injection of about a trillion and half dollars -- much more than if they had done it previously under the TARP (the $700 billion Troubled Asset Relief Program agreed by Congress last year)."

Soros added: "The well has been poisoned by the way the TARP money was used.

"It needs a good bank/bad bank solution, but I would do it differently than what is proposed," the Hungarian-born speculator-turned philanthropist said.

"I would keep the capital of the banks together with the bad assets in the bad bank and then create a new bank with the good assets of the bank and the recapitalise that, giving the shareholders the right to put in more money," he said.

"Without this the banks will not lend, because they know there is a lot of deterioration coming."

Earlier Soros told a press lunch that the "financial structure we used to take for granted has collapsed" and everyone was in a "state of shock" as the financial storm spread internationally and into the real economy.

He said the bankruptcy of Lehman Brothers investment bank last September was a "watershed event" and the financial system was now on "artificial life support." For full coverage, blogs and TV from Davos go to www.reuters.com/davos (Reporting by Mike Dolan; editing by Stella Dawson)


Power Players: Struggling Financial Firms Are Banking on Dodd


Power Players: Struggling Financial Firms Are Banking on Dodd


Published by Lindsay Renick Mayer on January 27, 2009 11:39 AM



Name: Sen. Chris Dodd (D-Conn.)Position: Although Dodd is chair of one of the more powerful congressional committees, he probably isn't the envy of his peers these days with an economic crisis growing larger by the day. Dodd has put in two years as chair of the Senate Committee on Banking, Housing and Urban Affairs and is now charged with shaping legislation to jump-start the economy and help floundering companies. His committee oversees the nation's financial institutions, housing and mass transit programs. Although he hasn't spent much time as chair, he's been in Congress for more than three decades.


Money Summary: Dodd has raised a total of $43.1 million since 1989 and has spent $43.2 million. His large war chest can be attributed, in part, to his presidential bid in 2008, which he abandoned after receiving less than 1 percent of the vote in the Iowa caucus that kicked off the primary season. He raised $18 million total in his attempt to win the White House. Overall, he's received 62 percent of his contributions from individuals (rather than the political action committees of unions and corporations) and is a popular Wall Street target, collecting $5.2 million from donors in New York, more than any other metro area. He's given other lawmakers and candidates 23 percent of the total $2.3 million that his leadership PAC, Chris PAC, has raised since the 2004 election cycle.


Campaigns Donors: Not surprisingly, Dodd's most generous sector is finance, insurance and real estate, which is filled with companies that are directly affected by legislation that comes out of the Banking Committee. The finance, insurance and real estate sector has given Dodd a total of $13.2 million since 1989, distantly followed by lawyers and law firms, which have given $3.7 million. The securities and investment industry, real estate industry, insurance companies, commercial banks, accountants and finance and credit companies all rank among his top 20 industry donors. In 2008, Dodd was among the top five recipients of money in the Senate from 21 industries, many of which are finance-related. He has received more money from hedge funds over time than all but two other lawmakers ($761,250), and expressed concern over a bill in 2007 that would have increased taxes on private-equity firms and hedge fund managers. Hedge funds are a big industry in Connecticut, his home state.


Dodd's most generous donors include many of the companies that have filed for bankruptcy or sought government help over the last six months: Citigroup ($428,300), Morgan Stanley ($211,300), American Insurance Group ($280,250) and Lehman Brothers ($154,300). Despite the companies' support, when the Senate was called on this month to release the second half of the $700 billion bailout money, Dodd called for stronger oversight provisions and limits on executive compensation for the companies receiving a handout.


Not all of Dodd's supporters come from Wall Street, however. Lobbyists, pharmaceutical companies and health professionals also rank among his most generous industries. During the race for the White House, the International Association of Fire Fighters (IAFF) endorsed Dodd and spent $202,300 independently to see him win. Dodd has sponsored bills to provide more funding to fire stations for equipment, training and staff.


Industry Favors: "No lawmaker has done more for firefighters in this nation than Chris Dodd," said Jeff Zack, spokesman for the IAFF. "Every time firefighters in this country say they need something, he's stood up and said 'I'm with you,' and he has not only said 'sign me on,' he's said 'let me write the bill.'


"Invests in: Compared to the rest of the Senate, Dodd is middle class. In 2007 he was worth between $629,019 and $2.1 million, ranking him 56th among all senators. At that time he had at least $100,001 invested in Blockbuster and drug makers Cardiome Pharma Corp. and Javelin Pharmaceuticals.


Other Money Matters: When mortgage buyers Freddie Mac and Fannie Mae were in dire financial straits last year and seeking help from the government, Dodd came under some fire for having received more money from the two companies' employees and political action committees than any other lawmaker over time, at $133,900. Dodd helped push through a rescue plan for the two companies last year, including better regulatory oversight in the measure.


In His Own Words: "This is not a time to be panicking about this. These are viable, strong institutions," Dodd said of Fannie Mae and Freddie Mac at a press conference in July 2008, when the federal government came to the rescue of the institutions. "These two are fundamentally, fundamentally strong. There's no reason for the kind of reaction we're getting."


Tuesday, January 27, 2009

Todd Friel on Rick Warren’s Quoting the Koran



Jan 27


As only he can, Todd Friel addresses Rick Warren’s quoting the Koran in his Inaugural invocation.



Rick Warren: The Economy’s Crashing, Buy My Stuff!




Jan 27




One thing they didn’t have during the Great Depression was Rick Warren. I don’t know how anyone survived. Today, I am the recipient of Rick Warren’s latest clever marketing effort, a breathless press release telling me that I need to be Purpose-Driven.

“With the collapse of our economy, the tools, resources and experiences we’ve bundled into the Purpose Driven Connection are arriving at the exact moment when Americans need them most,” Warren said.

Actually, Rick, the last thing people need to be doing right now with bills piling up is wasting money on your worthless drivel in “multimedia” form. Rick Warren further gushes, “God’s timing is always perfect.” No, actually, your promoters at Readers Digest are hoping that this spin on the economic crash will help save them from a major financial train wreck by hooking up with you to make money, Rick.

Save your money, people. Find your comfort and solace in the pure Word of God when times are tough. Rick Warren is a spiritual wolf in the fold who has been exploiting sheep for his own ambitions for years now. No number of press releases and clever marketing strategies are going to make people buy Purpose-Driven rubbish when they’re unemployed and getting hungry. Here’s the release:

Purpose Driven Connection Magazine Provides Timely Content in Economic Recession

Articles Offer Hope, Spiritual Solutions to Problems Americans Face Amidst National Hunger for a Deeper Connection to God and Others

LAKE FOREST, Calif., Jan. 27 /Christian Newswire/ — Dr. Rick Warren’s Purpose Driven Connection (PDC), a comprehensive bundled suite of personal growth tools, resources and experiences, launches this week with the release of the premier issue of the “Purpose Driven Connection” quarterly magazine. Included inside each issue is a small group discussion guide with a DVD offering Warren’s teaching on spiritual growth, and is the first of a dozen multimedia resources to be introduced in 2009 designed to provide personal spiritual development and support.

“With the collapse of our economy, the tools, resources and experiences we’ve bundled into the Purpose Driven Connection are arriving at the exact moment when Americans need them most,” Warren said. “The hollow hope of materialism has left us disappointed, empty and worried, and the economic collapse has created a hunger for a deeper spiritual connection to God and to each other.

“We certainly didn’t anticipate our national crisis when we began designing these tools, but we can now see how the Purpose Driven Connection is going to provide urgent and essential spiritual support and encouragement for millions of people in the difficult days ahead,” Warren added. “God’s timing is always perfect.”

Warren is well-known as the author of “The Purpose Driven Life,” the bestselling nonfiction hardback book in American history, and as pastor of Saddleback Church in Southern California. Nearly two years ago, he enlisted The Reader’s Digest Association, Inc. (RDA), as partner and publisher of his PDC tools. As a global multi-brand media and marketing company that educates, entertains and connects audiences around the world, RDA uses its editorial and content-delivery skills to serve affinity communities.

An annual subscription membership in PDC, which costs $29.99, includes the 146-page, quarterly “Purpose Driven Connection” magazine, quarterly video teaching by Warren on DVD with discussion guides, membership access to the online social network - launching mid-February - and nine other personal growth tools, resources and experiences including Word2U text messages, daily email devotions, life purpose courses, retreats and global service opportunities through a humanitarian strategy called the PEACE plan. A group discount rate is available through participating religious congregations and businesses. The magazine is also on sale Feb. 3 at newsstands, bookstores and national retail outlets, including Wal-Mart, for around $10. Additional information is available at www.PurposeDriven.com.

“Purpose Driven Connection is a spiritual growth network for nurturing healthy relationships, a framework for focusing one’s time and energy, a pathway for discovering one’s life’s purpose, a gateway to opportunities for making a significant impact with one’s life and a library of useful tools to accelerate one’s spiritual, emotional and relational growth,” Warren said.

The genesis of PDC came from a year-long series of conversations Warren held with small groups of pastors in cities across America. “Two years ago, I felt impressed to spend an entire year just listening to my co-workers in ministry; I wanted to hear their concerns, their needs, and what tools they needed most to develop their members to spiritual maturity,” Warren explained. “As I traveled from city-to-city, holding listening groups with pastors, certain themes and needs were mentioned over and over.”

Warren committed himself to helping these pastors with their people but lacked the resources and expertise to publish what they needed, so he formed a partnership with RDA. “We chose them for their values, their integrity, their understanding of our purposes, their experience in 14 languages and their willingness to take on the task of addressing these important issues,” said Warren.

Warren’s 24-year alliance, The Purpose Driven Network, has trained more than 500,000 pastors in 162 countries, and maintains a Web site, Pastors.com, exclusively for pastors. Now, following their advice, a separate PDC network for everyone else has been created.

“We will now have two networks - one for pastors and one to serve their members and the wider community,” Warren said. “The pastors asked for it, so we decided to figure out a way to provide it. The quarterly magazine is just the tip of the iceberg - it’s actually an index for the entire suite of PDC tools and services.”

One of the greatest problems pastors asked Warren to resolve was to figure out how to provide a convenient, constant flow of high quality teaching to congregational small groups and Sunday school classes at a lower price than retail outlets offer. Warren drew from his church’s experience of coordinating over 4,000 small groups meetings in 96 Southern California cities.

“We’ve been providing video curriculum to thousands of small groups for seven years, so we’ve learned the hard way what works and what doesn’t; by using the quarterly PDC magazine to deliver small group video teaching and workbooks, we are reinventing and revolutionizing how content is delivered to small groups and Sunday school classes,” Warren said. “Pastors love this idea because it saves them time, energy and money. All they need do is to have each small group or class get a subscription to Purpose Driven Connection and that class is provided an entire year’s worth of group video content, delivered directly to the mailboxes of the small group leaders.”

Over 30,000 American congregations have used the “40 Days of Purpose” small group curriculum. Warren’s newest study, “40 Days of Love,” based on 1 Corinthians 13, is the DVD study included in the premiere issue of the magazine. Churches across America will join in a nationwide “40 Days of Love” campaign beginning on Valentine’s Day weekend in February.

Purpose Driven Communications helps church leaders establish, transform and maintain healthy, growing congregations built around the God-given purposes of worship, fellowship, discipleship, ministry and missions. With offices in 45 countries, The Reader’s Digest Association, Inc. markets books, magazines, music, video and educational products reaching more than 100 million households in 79 countries and has global headquarters in Pleasantville, N.Y.

Note to Editors: For more information about Purpose Driven Connection, please visit http://www.purposedrivennews.com/.

Christian Newswire






Ice storm cuts power to more than 100,000


Tue Jan 27, 2009 2:42pm EST

Winter storm hits U.S.Play Video


HOUSTON (Reuters) - Freezing rain snapped trees and power lines on Tuesday, knocking out electricity to more than 100,000 customers in six states, utilities said.

Parts of Arkansas and Kentucky were the hardest hit by midday on Tuesday as a winter storm moved slowly southward into north Texas.

Icy conditions stretched from northern Texas, across Oklahoma, Arkansas, Missouri, Kentucky and West Virginia.

Entergy Corp's Arkansas utility reported 37,000 outages while American Electric Power's SWEPCO unit reported nearly 16,000 outages, mostly in Arkansas.

In Kentucky, E.ON's utility reported 37,000 customers without power; AEP's Kentucky unit reported another 4,500 outages by midday.

Oklahoma Gas & Electric said 10,500 customers lacked power in Oklahoma while AEP's Tulsa-based Oklahoma utility saw only 1,500 outages in its service territory.

Dallas-based Oncor reported some outages along the Texas-Oklahoma border as utility crews braced for icy rain and freezing temperatures to move into the Dallas-Fort Worth area later in the day, possibly leaving thousands of customers without electricity overnight.

(Reporting by Eileen O'Grady; Editing by Christian Wiessner)



'Americans are not your enemy,' Obama tells Muslims


WASHINGTON (CNN) -- President Obama said his administration will offer a hand of friendship to the Muslim world but will hunt down terrorist organizations that kill innocent civilians.


"My job to the Muslim world is to communicate that the Americans are not your enemy," Obama said in an interview with Al-Arabiya, the Dubai-based satellite television network. "We sometimes make mistakes. We have not been perfect."


During his run for the White House, Obama pledged to improve ties with the Muslim world, draw down U.S. troops in Iraq and close the detention camp at Guantanamo Bay, Cuba. The president also has pledged to address the Muslim world from a Muslim capital in the first 100 days of his administration. No location has been announced.


Obama said the United States will go after terrorist groups that kill innocent civilians but will do so while respecting the rule of law. The president said that difference makes America great.


The Obama administration also has taken an early interest in the Middle East peace process between the Israelis and the Palestinians, with the president naming former Sen. George Mitchell as his special envoy to the region. Mitchell is scheduled to arrive in the Mideast on Tuesday to shore up a fragile cease-fire between Israel and Gaza's Hamas leadership.


"I think the most important thing is for the United States to get engaged right away," Obama told Hisham Melhem, Al-Arabiya's Washington bureau chief.



A tentative cease-fire between Israel and Hamas-ruled Gaza began last week after a three-week military operation by Israeli troops in the Palestinian territory.

"Ultimately, we cannot tell either the Israelis or the Palestinians what's best for them. They're going to have to make some decisions," Obama said. "But I do believe that the moment is ripe for both sides to realize that the path that they are on is one that is not going to result in prosperity and security for their people. And that instead it's time to return to the negotiating table."

Obama said the United States will start by listening, not dictating, and then a response will be formulated after consultations with all the major parties involved.

Obama's interview was seen widely in Pakistan and has received a generally positive response from analysts there.

Islamabad author and journalist Imtiaz Gul told CNN: "It's a good sign of an attempt to reconcile with the Muslim world, to say America wants to reach out to them and not to consider them as an enemy."

Analyst Zaid Hamid said that Obama has yet to win the hearts and minds of the Muslim world.

Hamid said the real litmus test for the Muslim world is what Obama does with the crisis in Gaza.





"Economic Stimulus Package" Global Jargon


Speaking the Same Language

Are we there yet?



Recently, I've begun hearing the term, Stimulus Package in many places besides the United States. It's as if the whole world has jumped on the Stimulus Package bandwagon. To me it's just another one of those contemporary consciousness raising words like transparency or dialogue. It also reminds me of the outmoded socialist concept of Perestroika. Or, is it really outmoded?
.
Among the countries that have begun using the magic words Stimulus Package are Mexico, Germany, France, Australia, New Zealand, Vietnam, and the Philippines. If I'm not mistaken these countries will also print money (like the U.S. is doing) and attempt to jump-start their economies in the face of the world (global) financial difficulties? What really amazes me is: Wasn't that what they wanted to do, to Globalize the planet's economies? Well, they've just about achieved that and are now trying to fix it with a Stimulus Package in several globalized corners of the globe. So, if the solution was to consolidate for survival? Why is it not working? Why is everyone now having to resort to a Stimulus Package? We're all speaking the same language, as if reading from a script; But, I think that the Global solution was defective from its inception. It was really meant to create interdependence between the countries, not successful economies.
.
The Global Village was a far fetched idea, it's no different from any other plan previously devised to divide and conquer. The difference is that the Globalization Scheme was intended to unite and conquer. So, prepare for more Stimulus Packages; it's the wave of the future until the goal of ONE World Government is reached; Then, it'll just be rationing of goods and services to those that meet the established Global (NWO) criteria. Guess who will suffer and will go without? Those that refuse to bow to the NWO, a.k.a The Beast, and the Image of the Beast.
.
Read Revelation 13:17

Arsenio,


Maranatha.

Davos delegates gather to 'shape new world'


By CNN's Simon Hooper

DAVOS, Switzerland (CNN) -- The head of the World Economic Forum has urged delegates to respond to the global economic crisis by shaping a "new world" as they braved snowstorms, icy roads and subzero temperatures Tuesday to gather for the five-day annual brainstorm in the Swiss Alps.

Speaking to CNN, WEF founder Klaus Schwab said the world was in the midst of a "transformational crisis" and admitted that Davos 2009 would be "more concerned, more austere and more modest" than previous events.

"The whole atmosphere is going to be different," said Schwab. "Above all else this is a crisis of confidence. To re-store confidence you have to establish signposts that the world after the crisis will be different. We have to create a new world and that is what Davos 2009 will be all about -- serving society."

Watch an interview with WEF's Klaus Schwab »

Davos has traditionally attracted the cream of the global business community, eager to bring a boardroom mentality to bear on a smorgasbord of international issues from climate change to developing world aid to weapons proliferation.

But the spotlight this time is likely to fall squarely on political leaders as newly humbled industries from banking to car manufacturing seek government assistance to help them survive a deepening recession that has devastated stock markets and threatens millions of jobs.

Peter Levene, Chairman of the London-based insurers Lloyd's, admitted the mood among corporate representatives would need to be more reflective and self-critical than usual.

A downward economic spiral? More with Peter Levene »

"For a long time people have come here -- probably with reason at the time -- saying aren't we brilliant, we're doing a fantastic job... and suddenly the bubble burst, and they have to accept that and they have to say so," he told CNN.

"Some people say, 'Well, why are they going to Davos? Shouldn't they be back in the office trying to fix things?' I think getting the people who have to make these decisions together to talk quietly is a good idea -- but I think the razzmatazz has to disappear."

World leaders are set to attend in record numbers, including Russian Prime Minister Vladimir Putin, who will deliver the opening address Wednesday, Chinese Premier Wen Jiabao, British Prime Minister Gordon Brown, German Chancellor Angela Merkel and Australian Prime Minister Kevin Rudd.

"One of the key things this year is that it is the politicians who are taking center stage," TIME Deputy Editor Michael Elliott told CNN. "Everyone realizes that it is determined and systematic government action that is needed to make sure that this economic crisis doesn't turn into a great depression."

More from Michael Elliott: What happened to the global economy? »

But Elliott said many of the conversations taking place this week, both in public sessions and behind closed doors, would be concerned less with the world beyond the current crisis as getting the economy out of its present malaise.

"As people gather here today, there is a tremendous nervousness that 2009 might turn out to be worse than 2008," he warned. "We're still in the crisis and some of the very best sessions we'll have this week will not be looking to the post-crisis world but how we ameliorate the crisis that we are in the thick of."

Source: http://edition.cnn.com/2009/BUSINESS/01/27/davos.tuesday.crisis/

Left wing government likely for Iceland


Left wing government likely for Iceland

Published: Tuesday 27 January 2009 13:39 UTC
Last updated: Tuesday 27 January 2009 13:39 UTC

Iceland looks likely to gain a left wing government. President Olafur Ragnar Grimsson has called on the leader of the Social Democratic Alliance to form a cabinet with the Left-Green party. The minority cabinet would then govern with the support of the Progressive Party.

The leader of the Social Democrats, Ingibjorg Gisladottir, believes she can fulfil the president's request and expects to complete talks with the other parties by the weekend.

Former Prime Minister Geir Haarde resigned on Monday after his Independence Party's coalition with the Social Democrats broke down. The coalition came under enormous pressure when the credit crisis led to the collapse of Iceland's economy.

Source: http://www.radionetherlands.nl/news/international/6151737/Left-wing-government-likely-for-Iceland

Monday, January 26, 2009

Senate Passes Bill to Delay Transition to Digital Television

(Photo: Bebeto Matthews/AP)


Senate Passes Bill to Delay Transition to Digital Television


By Kim Hart
Washington Post Staff Writer
Tuesday, January 27, 2009; Page D01

The Senate last night approved a four-month delay in the nation's transition to all-digital television to give consumers more time to prepare for the switch.

Broadcasters are scheduled to stop airing analog broadcasts Feb. 17. Consumers with an analog television will need a converter box to get broadcasts. People with digital televisions or cable or satellite service will not lose programming.

President Obama earlier this month urged Congress to postpone the transition, citing evidence that many consumers are not ready. The Nielsen Co. said last week that more than 6.5 million U.S. households are not prepared and could see their television sets go dark next month.

But some Republicans say that changing the date would further confuse consumers and create additional costs for broadcasters who have made extensive preparations to switch next month. Wireless companies and public safety agencies also are waiting for airwaves that will be freed by the transition.

It is unclear if the House will immediately pass the Senate's version of the bill, which does not specify how the costs of a delay would be covered. The House could add its own provisions, which would require further Senate action. It could also waive budget rules and seek funds in the stimulus package.

Sen. John D. Rockefeller IV (D-W. Va.), chairman of the Senate Commerce Committee, urged the House to pass the bill, which would push the transition back to June 12.

"Delaying the upcoming DTV switch is the right thing to do," Rockefeller said. "I firmly believe that our nation is not yet ready to make this transition at this time. The Senate acted responsibly to give the Obama administration time to attempt to bring order to a mismanaged process."

PBS chief executive Paula Kerger said yesterday that a delay would cost public broadcasters $22 million. She said she hoped lawmakers would provide funds to PBS if they proceed with a delay.

The bill would allow broadcasters to turn off analog signals before the June 12 deadline, and public safety agencies would be allowed to use those airwaves as soon as they are available. The bill would also allow consumers with expired coupons for converter boxes to re-apply for new ones.

The National Telecommunications and Information Administration, which is running the coupon program, has hit its $1.34 billion funding limit. More than 3 million consumers are on the waiting list for coupons, which will come available as already issued coupons expire.



Venezuelan President Hugo Chavez says OPEC could cut output - again


Venezuelan President Hugo Chavez says OPEC could cut output - again

THE ASSOCIATED PRESS
January 26, 2009 08:20

CARACAS, Venezuela - Venezuelan President Hugo Chavez says OPEC could further reduce oil production to boost low prices.

The Organization of Petroleum Exporting Countries has reduced output by 4.2 million barrels per day since September through a series of production cuts as the 13-member cartel seeks to bolster prices.

Chavez said OPEC could cut production by as much as four million barrels per day if necessary.

If OPEC must "cut four million more in production, we cut," Chavez said during a Monday radio broadcast.

Venezuela announced this month that it was reducing output by 189,000 barrels per day under OPEC's cuts.

Venezuela is currently producing about 2.4 million barrels of oil a day, according to OPEC.


Blagojevich Fundraiser Added to Obama, Biden, Jackson War Chests


Raghuveer Nayak MS, RPh,owner/operator of MRI centers and a clinical laboratory, former owner of chain drug stores, and an architect of the proposed "Cook County Prescription Assistance Coverage for the Elderly" program.


Blagojevich Fundraiser Added to Obama, Biden, Jackson War Chests

Published by Lindsay Renick Mayer

on January 26, 2009 5:54 PM



Although it's unclear to what extent businessman Raghuveer Nayak was involved in Illinois Gov. Rod Blagojevich's alleged scheme to sell President Obama's Senate seat, what is clear is Nayak's commitment to funding the campaigns of the governor, the new president, the new vice president and others in Congress and the administration. Investigators are reportedly probing whether Blagojevich tried to get $500,000 from Nayak to secure the seat for Illinois Rep. Jesse Jackson Jr., whose brother was a business partner of Nayak's. In total, Nayak has given $220,300 to federal lawmakers and committees, 93 percent of which has gone to Democrats, the Center for Responsive Politics has found.


Jackson has received more money from Nayak at the federal level than any other lawmaker since 1989, at $22,600. Nayak was a seemingly close associate of Jesse Jackson Sr., according to the Washington Post, and joined him in civil rights causes, sat on the board of one of his organizations and accompanied him on a trip to New Delhi in 2007. Although Nayak only gave Blagojevich $500 during the governor's time in Congress, he has been one of Blagojevich's top fundraisers for state office, the Post reported. Nayak has been a pervasive donor, especially to Illinois lawmakers, which now gives him a connection to some of the top politicians in the country. He and his wife, Anita, have given Obama $19,800 since the 2004 election cycle, more than any other recipient but Jackson. They also gave $2,500 to former Illinois Rep. Rahm Emanuel, who is now White House Chief of Staff.


By spreading his money between a number of presidential candidates in the last election cycle, Nayak ensured that he had a pretty good chance of supporting the eventual winner. Since the 2006 election cycle, he's given $6,600 to both Secretary of State Hillary Clinton and Republican Sen. John McCain, who were 2008 presidential candidates. Since the 2004 election cycle, he's also contributed $8,900 to Vice President Joe Biden, who originally ran for president in the last election cycle, and $4,600 to Republican Mitt Romney's unsuccessful campaign. In 2004, he also covered his bases, giving $2,000 to former president George W. Bush and $8,000 to Bush's Democratic opponent, Massachusetts Sen. John Kerry (the $8,000 includes contributions to his compliance fund).


The following is a list of all recipients of federal campaign contributions from Raghuveer Nayak and his wife (totals include donations to leadership PACs and candidate committees):



Name.......Grand Total
Jesse Jackson Jr. (D-Ill)
$22,600
Barack Obama (D-Ill)
$19,800
Gery J. Chico (D-Ill)
$12,800
Evan Bayh (D-Ind)
$12,700
Melissa Bean (D-Ill)
$12,500
Luis V. Gutierrez (D-Ill)
$10,200
Jan Schakowsky (D-Ill)
$9,450
Daniel W. Hynes (D-Ill)
$9,250
Joseph R. Biden Jr. (D-Del)
$8,900
John Kerry (D-Mass)
$8,000
Danny K. Davis (D-Ill)
$7,150
Hillary Clinton (D-NY)
$6,600
John McCain (R-Ariz)
$6,600
Joyce W. Washington (D-Ill)
$6,000
Bill Foster (D-Ill)
$5,600
Dick Durbin (D-Ill)
$5,100
Ashwin Madia (D-Minn)
$4,600
Mitt Romney (R-Mass)
$4,600
John Conyers Jr. (D-Mich)
$4,200
Charles B. Rangel (D-NY)
$4,200
Melvin L. Watt (D-NC)
$4,200
Howard Dean (D-Vt)
$4,000
Richard Gephardt (D-Mo)
$4,000
Jill Morgenthaler (D-Ill)
$2,800
Rahm Emanuel (D-Ill)
$2,500
John Lewis (D-Ga)
$2,300
Roberto Maldonado (D-Ill)
$2,300
Dan Seals (D-Ill)
$2,300
Thomas J. Vilsack (D-Iowa)
$2,300
George W. Bush (R-Texas)
$2,000
Democratic Congressional Campaign Cmte
$2,000
Ed Royce (R-Calif)
$2,000
Keith Ellison (D-Minn)
$1,000
Scott Harper (D-Ill)
$1,000
Daniel Lipinski (D-Ill)
$1,000
Pat Quinn (D-Ill)
$1,000
Harry Reid (D-Nev)
$1,000
Rod Blagojevich (D-Ill)
$500
Mike Honda (D-Calif)
$500
Tom Lantos (D-Calif)
$500
Alan J. Dixon (D-Ill)
$250



The World Constitution and Parliament Association


(WCPA)

"Let us raise a standard to which the wise and honest can repair."
web site: http://www.wcpa.biz/

The World Constitution and Parliament Association was established in 1958 by Professor Philip Isely and his wife Margaret Isely of Denver Colorado, USA, to create a Constitution for a Federation of Earth and to promote democratic world government under that Constitution.

It was soon joined by Dr. Terence Amerasinghe and Dr. Reinhart Ruge, who became Co-Presidents. The organization has grown into a world-wide movement since that time, with chapters today in many countries involving many thousands of citizens around the world.
In addition, thousands more have registered as delegates for Provisional World Parliaments organized by WCPA and have declared themselves as personal ratifiers of the Earth Constitution.

Current Officers and members of the Executive Cabinet:
President: Dr. Terence P. Amerasinghe (Sri Lanka)
Secretary-General, Treasurer: Dr. Glen T. Martin (USA)
Deputy Secretary-General: Ms. Eugenia Almand (USA)
Honorary President for Life: Sir Dr. Reinhart Ruge (Mexico)
Vice-Presidents: Dominique Balouki (Togo), Dr. Ramadan Breki (Libya), Sri Jagdish Gandhi (India), Dr. Dauji Gupta (India), Dr. Dr. Roger Kotila (USA), Dr. Errol E. Harris (England), Dr. Karen Singh, India,
World Peace Envoy: (position vacant)
Youth Coordinator: H. M. Sawar Alam (Bangladesh and Canada),

A Brief History

The development of the Constitution for the Federation of Earth and the Provisional World Parliament through the work of the World Constitution and Parliament Association:

1958. Agreement to Call a World Constitutional Convention initiated by four persons, circulated worldwide for signatures, requesting both national governments and people of each country to send delegates.

1959-1960. World Committee for a World Constitutional Convention formed. Thousands sign the Agreement, including many prominent leaders. Organizers of this action travel around the world to enlist support.

1961-1962. Definitive Call to the World Constitutional Convention adopted. Many persons sign, including Heads of five national governments.

1963-1964. First Preparatory Congress held Denver, Colorado, USA, with delegates from five continents. Call to the World Constitutional Convention is publicly issued, then circulated for more signers and response.

1965-1966. Second Preparatory Congress held at Milan, Italy. Outline for Debate and Drafting of a World Constitution is formulated, on basis on alternative choices. Plan agreed for a Peoples World Parliament to meet concurrently.

1967. Decision made at Third Preparatory Congress to begin Convention in 1968, even if no government delegates. 300 Peoples Delegates pledged.

1968. First working sessions of World Constitutional Convention and Peoples' World Convention held at Interlaken, Switzerland, and Wolfach, W. Germany. 200 Peoples Delegates from 27 countries, of 5 continents. Work begun on drafting the World Constitution.

1969-1971. Strategy for Reclaiming Earth for Humanity is circulated. Emergency Council of World Trustees meets, Santa Barbara, Calif., and issues First Decree for Protection of Life, outlawing nuclear weapons. Directions given to drafting commission.

1972. World Constitution drafting commission of four persons works for 2 months, almost completes first draft of Constitution For The Federation of Earth.

1973-1975. First draft finished, printed in 1974, then circulated worldwide for comment, together with Call to the second session in 1977, now defined as the World Constituent Assembly. Comments on first draft complied.

1976. Drafting Commission meets again. Second draft completed, circulated.

1977. Second Session of World Constituent Assembly held in June, Innsbruck, Austria. Earth Constitution debated paragraph by paragraph, amended, then adopted with 138 original signers from 25 countries of 6 continents. Call for ratification by the nations and peoples of Earth is issued. Constitution is sent to U.N. General Assembly and to all national governments.

1978-1980. Earth Constitution is circulated worldwide for debate and ratification. Third session of World Constituent Assembly held Jan. 1979, Colombo, Sri Lanka; adopts Rationale For A World Constituent Assembly, defining right of people to convene Assembly, draft constitution, and obtain ratification. Appeal issued for national parliaments to ratify.

1981. World Constitution & Parliament Assn. meets at New Delhi, India. Call issued for Provisional World Parliament to convene 1982 under terms of Article 19 of Earth Constitution. Honorary Sponsor list of 150 prominent persons enrolled.

1982. First Session of Provisional World Parliament meets at Brighton, England. Delegates form 25 countries of 6 continents. Five world Legislative Acts are adopted: for World Disarmament Agency, World Economic Development, Ownership of Oceans & Seabeds, Graduate School of World Problems, World Courts.

1983-1984. First Provisional District World Court organized in Los Angeles; takes up case of outlawing nuclear weapons. Plans for Provisional World Parliament in Sudan and Nigeria thwarted by military coups.

1985. Second Session of Provisional World Parliament held New Delhi, India. Opened by President of India, presided by speaker of Lok Sabha (the lower house of the legislature of India). Three more World Legislative Acts adopted: for Emergency Earth Rescue Administration, World Government Funding, and Commission on Terrorism

The Constitution Club, where the Constitution of India had been signed. The location of the Second Session of the Provisional World Parliament.

1986. Campaign continued for "provisional" ratification of the Constitution for Federation of Earth, pending review at next World Constituent Assembly.

1987. Third session of Provisional World Parliament held Miami Beach, Florida. Three more World Legislative Acts are adopted: for Global Finance System, Environment Protection, and Hydrogen Energy. Provisional World Cabinet started.

1988-1989. Plan launched for collaboration by many organizations to prepare next session of World Constituent Assembly. 150 organizations join in Preparatory Committee. Two meetings held in New York with U. N. Ambassadors, to explain and solicit help. List of Honorary Sponsors reconfirmed and expanded.1990. Government of Egypt agrees to host Assembly. Three preparatory meetings held. Call circulated for Governments and People to send delegates.

1991. Location of 4th session World Constituent Assembly abruptly changed due to Gulf War. Held at Troia, Portugal, in May. Delegates adopt 59 amendments to Earth Constitution. New ratification campaign begun, appealing to both people and governments. Most Honorary Sponsors personally ratify.

1992. Global Ratification & Elections Network organized, including several hundred organizations, to promote ratification of Constitution for Federation of Earth, then election of delegates to World Parliament. First Government heads must ratify.

1996. Fourth Session of the Provisional World Parliament at Barcelona, Spain, September 13-18. Ratification of a Manifesto declaring the oceans and sea beds the property of the people of Earth. Articulation of the plan entitled "Immediate Economic Benefits of World Government."

2000. The Fifth Session of the Provisional World Parliament takes place on the Island of Malta, November 22nd to 27th. One legislative bill and a number of resolutions are passed. Planning begun for a series of global expositions culminating in a World Constitutional Convention to ratify the Constitution.

2003. The Sixth Session of the Provisional World Parliament is held in Bangkok, Thailand, March 23-27 (organized in cooperation with the Institute On World Problems). A world peace act is passed, a commission for legislative review is founded, and other important provisional legislative work is accomplished on behalf of a future world under the rule of law and justice.

2003. The Seventh Session of the Provisional World Parliament takes place in Chennai, India, December 26-30 (organized in cooperation with the Institute On World Problems). The agenda included ratification of the Manifesto for the Earth Federation, enactment of a world criminal court, a penalty classification bill to be used by the new court, conservation standards for World Government records, a bill for the creation of a World Patents Office, and the beginning of work on a Global People’s Assembly integrated with the Constitution to ensure popular participation in the coming world government.

Dr. Eugenia Almand, Dr. Terence Amerasinghe, and Dr. Dominique Balouki of WCPA meet with President Eyadema of Togo in June 2003.

2004. The Eighth Session of the Provisional World Parliament was organized for Lucknow, India, August 10-14. The agenda included a statement on Emerging World Law as of today summarizing the work of Acts 1-25 passed at earlier sessions of Parliament, a bill for a World Juvenile Court, the beginning of some ministries of emerging world government, and a plan for a ratification convention for the Constitution for the Federation of Earth.

Location of the Eighth Session of the Provisional World Parliament in Lucknow, India, August 2004


A South India Chapter of WCPA meeting in 2005. The Director of the South India chapter is Mr. Ramanujam Ananthanarayanan, in the dark suit, front row, third from left. Dr. Terence Amerasinghe is front row third from right and Dr. Eugenia Almand is on the right.

2006. The Ninth Session of the Provisional World Parliament was held in Tripoli, Libya, April 11-15. Acts passed by the Parliament: WLA_31 World Ombudsmus Act (enables the Office of the World Ombudsmus to begin its work of protecting human rights worldwide), WLA_32 Conflict Resolution Bill (creates a department of Conflict Resolution for the Earth Federation), WLA_33 Fissile Production Ban (banning the production of fissile materials used for nuclear weapons)WLA_34 Nuclear Weapons Elimination Protocol, WLA_35 Nuclear Contamination Act, WLA_36 Quit Guantanamo Directive (ordering the USA to turn Guantanamo Bay over to the Earth Federation and to Cuba), WLA_37 Agreement on World Federal Privileges & Immunities (an adaptation of the rules of the International Criminal Court to world law under the Earth Constitution).


The El Kabir Hotel: location of the 9th Session of Parliament in Tripoli

2007, June. The Tenth Session of the Provisional World Parliament meets in Kara, Togo and passes several Provisional World Legislative Acts dealing with the economics of ending investment in military hardware production companies and nuclear weapons manufacture. The Parliament also passed a resolution calling for the prosecution of the alleged Pakistani war criminals who committed crimes against the Bangladesh people during the 1971 revolution. It also passed an act for a Guaranteed Annual Income for every person within the Earth Federation beginning at age 18 and lasting throughout life. This act adds an important element to the collection of economic acts passed by the parliament over its 25 year history. Together these acts have built the infrastructure for a transformed world economy premised on universal prosperity and peace, rather than scarcity and war. Below is a photo of the Parliament in session.


The 10th Session of the Provisional World Parliament in session in Kara, Togo, June 2007


Source: http://www.runet.edu/~gmartin/WCPA%20page.htm



Note: Highlights (Emphasis mine); "Wasn't able to include the pictures mentioned in article on this post". Blogman.

Free Trade: Passing The Baton to Obama


By Dana Gabriel





When it comes to further advancing free trade initiatives, it really makes no difference which party controls, congress or the presidency. Democratic President Bill Clinton signed the North American Free Trade Agreement (NAFTA) and Republican President George W. Bush did likewise with the Central American Free Trade Agreement (CAFTA). Any U.S. trade deal that has been negotiated and signed since NAFTA is based on that failed model. President Barack Obama voted against CAFTA when he was a senator and has come out against the U.S.-Colombia Free Trade Agreement (FTA). He has promised to renegotiate NAFTA which could be used to jump-start the Security and Prosperity Partnership (SPP) and plans for a North American Union. It could also serve to further spread the NAFTA model to the hemisphere.

Out of the ashes of the failed Free Trade Area of the Americas (FTAA) came CAFTA. It expanded NAFTA’s free trade zone to El Salvador, Honduras, Nicaragua, Guatemala, Costa Rica and the Dominican Republic. Bush signed the agreement into law on August 2, 2005, after it had passed the House of Representatives under very questionable circumstances. It was hailed as a milestone for trade initiatives in the Americas and as an opportunity to create new jobs and open new markets for American products. CAFTA, like other free trade agreements, has failed to deliver on the promise of prosperity and has served to further benefit multinational corporations. It has been a rough ride and on January 1, 2009, Costa Rica became the last member country to enter into the agreement. This was not before they had to make some changes, including privatization of certain parts of their economy. Free Trade deals such as NAFTA and CAFTA, have been used to lock member countries into a framework that further favors investor rights and protections.

Much like NAFTA, CAFTA also granted corporations and foreign investors a new set of rights and privileges whereby they can sue member nations, if they feel their profits have been restricted. In December of 2008, Pacific Rim Mining Corp. threatened to sue the government of El Salvador under CAFTA, and filed a notice of intent. The company claims that despite compliance with current laws in place, they have been denied permits to begin mining silver and gold. Pacific Rim says that they have invested some $75 million and could be seeking up to $200 million in monetary damages and potential lost profits. Some scientists, along with citizen and environmental groups, have warned that the project poses a serious threat to local water supplies. This comes in the midst of governmental debates in El Salvador, pertaining to new mining laws. If the dispute is not resolved by March 9, 2009, Pacific Rim will be able to begin arbitration hearings. CAFTA includes a dispute-resolution mechanism similar to NAFTA’s chapter 11. Trade deals have been used to smuggle through a new set of transnational corporate rights. As a result, foreign investors and corporations have been given the power to challenge and even overturn labour, health, and environmental laws.

Obama has promised to renegotiate NAFTA in order to strengthen labour and environmental provisions. There are many who want him to do the same with CAFTA. In an article he wrote entitled ‘Why I Oppose CAFTA’ he stated, “Globalization is not someone’s political agenda. It is a technological revolution that is fundamentally changing the world’s economy, producing winners and losers along the way. The question is not whether we can stop it, but how we respond to it.” Does this mean we should just accept and embrace it? Try and tell that to the millions around the world who live in poverty and are resisting globalization. Ron Paul, who ran as a Republican presidential candidate, advocated real change which sparked an organic grassroots movement. He commented, “CAFTA was driven by politics and nothing more. Multinational corporations and political globalists share the same goals, namely the centralization of political power in international bodies and the diminution of national sovereignty.” In hopes of maybe trying to resurrect a revised version of the FTAA, Bush launched the ‘Pathways to Prosperity in the Americas’ initiative in September of 2008. It is modeled after the SPP and the U.S.-EU Transatlantic Economic Council. NAFTA and the SPP are precursors to a North American Union. Combined with CAFTA and other bilateral and regional deals, it could facilitate a larger multilateral agreement. What does an Obama presidency mean for the pending U.S.-Colombia FTA?

Even before taking the oath of office, there was already pressure for Obama to use his influence to get the U.S.-Colombia FTA passed. Recently, Secretary of State Hillary Clinton announced that Obama will continue to support Plan Colombia, but she said it did require some adjustments. Plan Colombia is part of the disastrous war on drugs. It was launched by the Clinton administration and has failed to reduce the flow of illegal drugs into the U.S. and has led to more violence and corruption in Colombia. With Obama further committing to this initiative, I believe that it holds well for the U.S.-Colombia FTA. He could get assurances from the Colombian government to better uphold human rights, and curb violence being perpetrated against labour leaders. After a few concessions are made to the agreement, Obama could give it his stamp of approval. The Democrats could then claim victory for the Colombian people and labour movements around the world. This would demonstrate Obama’s willingness to honor labour and human rights standards. With the current global economic crisis, many believe that the U.S. ratifying this trade agreement, would send a positive message to the rest of the world. It is a direct result of our monetary policies, government managed free trade agreements, and globalization, that we find ourselves in such economic dire straits.

Obama does have a clear advantage of preceding one of the most unpopular presidents in American history. In many ways, Bush is meant to take the fall and have everything blamed on him. His failures will be used as a steppingstone for the new administration. The global elite have passed the baton to Obama and he will carry on with open borders, amnesty, free trade, a North American Union agenda and the push towards world governance. He will be able to accomplish things that Bush and past presidents initiated, but were unable to complete. Many have been trapped in the whole fake left-right paradigm, designed to divide and conquer and neutralize any true opposition. With Obama, the propaganda masters have done a magnificent job mass marketing and packaging him for the masses. His popularity and cult-like worship seems to even transcend party lines. Unfortunately, just like Bush, he has no intentions of upholding the constitution or protecting American sovereignty. Expectations have been set high and Obama will be able to get by on charisma and rhetoric for only so long. We need to judge our leaders not by their words or promises, but by their actions.