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German Economic Data Provides Only Small Support for Euro

By , February 19, 2013 10:26 am

Stack of one-euro coins on a chartGerman economic data has provided a bit of a boost to the euro today, but the gains are more modest than many might expect. Even though the macroeconomic picture appears to be getting better in Germany, it’s not quite enough to overcome the other problems in the eurozone.

German economic sentiment improved, according to the latest ZEW survey of investors. The news has been helping European shares, and provided a small boost to the euro. Sentiment was better than expected, and the macroeconomic implications have been on the positive side. Also providing a little help for the euro is the fact that the latest Spanish bond auction saw reasonable demand.

However, there are still some issues facing the eurozone. Concerns about upcoming Italian elections (and the possibility of a hung parliament), as well as worries about peripheral countries in the eurozone, are holding the euro back.

Even though the euro is a little bit higher against its counterparts, it’s not as high as it could be. There is still some concern about the 17-nation currency, and that is limiting its gains.

At 15:42 GMT EUR/USD is up to 1.3365 from the open at 1.3351. EUR/GBP is up to 0.8638 from the open at 0.8630. EUR/JPY is a little lower, at 125.0865, down from the open at 125.4400.

If you have any questions, comments or opinions regarding the Euro, feel free to post them using the commentary form below.

Forex News

Romney’s Debate Zinger About China Provides Opening for Constructive Policy Debate

By , October 5, 2012 6:27 am

The wisdom and advisability of “pivoting” in order to economically, militarily and politically isolate your main banker is a head scratcher.

Cross-posted from the Peace Action Peace Blog.

So I have to admit that when I heard it last night during the presidential debate, I thought this was a clever zinger by Mitt Romney (or his speech writers more likely):

“What things will I cut from spending? Well, first of all, I will eliminate all programs by this test, if they don’t pass it: Is the program so critical that it’s worth borrowing money from China to pay for it? And if not, I’ll get rid of it.”

This needs a bit of unpacking (and my few points about this quote are far from comprehensive; I’m sure others have very different takes in it).

First, Romney’s “test” is somewhat appealing, purposely so I’m sure, to folks who are concerned about the U.S. debt, much of which is owned by China. However, one could have made the point in a generic way, leaving out the fact that China is our largest banker (“Is the program worth continuing to borrow money to pay for it?”). That would still be a good test, yes? In addition to judging government programs by that standard, people make that judgement in their personal lives all the time, determining whether to borrow money to buy a car or a house or to go to college is a smart move.

So was Romney’s mention of China just an off-hand remark? I don’t think so. “China” to many Americans can mean very different things, but many of them are, in my observation, unfortunately pejorative. So my guess is this was intentional, meant to raise unhelpful and maybe even racist stereotypes about China, and concerns about the U.S.-China economic relationship.

However, Romney gave us an opening, unwittingly I presume, for deeper analysis and conversation about the U.S.-China relationship, especially in the “security” realm (others could certainly go much deeper than I into the economic interdependency, not always healthy, between the world’s two largest economies).

Josh Rogin, blogging for Foreign Policy, captured this very nicely: “Is Romney saying it’s worth borrowing from China to build more ships to contain China?” This is so brilliant and succinct because this is exactly what the U.S. is doing now, and planning to increase in the future, under the military’s much-ballyhooed but little understood “Asia-Pacific pivot.” (For example, and speaking directly to Rogin’s point, the U.S. Navy has announced it plans to station 60% of the overall fleet in the Pacific.)

While Romney won’t publicly say this (and neither will Obama), the U.S. war machine needs an enemy to continue to justify its raison d’etre and its stranglehold on the lion’s share of our federal tax dollars. “International terrorism” just doesn’t cut the mustard. China is the only plausible “enemy” that might fit the bill.

Except China, which certainly has many economic, environmental, energy, human rights and democracy challenges, has no real interest in an arms race or global competition for military hegemony with the U.S. China certainly has regional interests that are of serious concerns to its neighbors, but it is simply not an expansionist power to anything like the degree the U.S. is. A few factoids on this are instructive:

• The U.S. has somewhere between 800 and 1,000 foreign military bases (there is no agreement on the number or even the definition of a “base,” which is why the number is so imprecise). China has one, a relatively new one at that, in Seychelles (which is telling, representing as it does a key Chinese concern, keeping open shipping lanes).

• At $ 711 billion per year, the U.S. spends about as much on the military as the rest of the world combined (and the full “national security” budget is over $ 1 trillion per year). China, with the number two military budget, spends about one-fifth of what the U.S. does, at $ 143 billion (figures from SIPRI, Stockholm International Peace Research Institute).

• The U.S. has a dozen aircraft carrier battle groups, able to project fearsome military might worldwide (to say nothing of our nuclear arsenal). China just recently inaugurated its first aircraft carrier, which experts say is at least several years away from minimal combat readiness, according to a recent Wall St. Journal article. At present it is fit only for training purposes, and China doesn’t have any jets that can land on it. So by U.S. standards, the number of Chinese aircraft carriers would be “none.”

• The U.S. military divides the entire planet into regional “commands,” with forces and power projection plans covering basically the whole planet. Neither China nor any other country has any such structure or capability.

So the wisdom and advisability of “pivoting” in order to economically, militarily and politically isolate your main banker is a head scratcher. Why would China want to underwrite that? Especially when its biggest economic interest will soon probably be to stimulate domestic consumer demand.

And why would this pivot, offering only a pointless, counter-productive military competition with China, be in the interests of the people of this country? It would certainly fail this test – should we spend our tax dollars on an idiotic, open-ended military buildup to “contain” China (when the best policy would be to rely on non-coercive diplomacy to balance the interests of all the peoples of the region), instead of on schools, sustainable energy and jobs, affordable housing, infrastructure and addressing climate change?

Kevin Martin is the Executive Director of Peace Action.

FPIF Latest Content

UK provides intelligence to insurgents in Syria: Sunday Times

By , August 19, 2012 1:48 am

UK provides intelligence to insurgents in Syria: Sunday Times
By: Press TV on: 19.08.2012 [06:08 ] (48 reads)

UK provides intelligence to insurgents in Syria: Sunday Times

Syrian insurgents (file photo)

Sun Aug 19, 2012 5:56AM GMT

A report by The Sunday Times reveals British intelligence on Syrian troop movements has been helping insurgents launch attacks on Syrian forces.

The report quoted an unnamed Syrian official as saying British spies, based in Cyprus, gather the intelligence. They then pass it on to Turkish and American sources and the Turkish sources ultimately pass on the intelligence to Syrian insurgents.

The disclosure provided further evidence that British intelligence is playing a covert role in the anti-Syria campaign.

The official said Britain has two military bases in Cyprus, one in Dhekelia and the other in Akrotiri.

“British intelligence is observing things closely from Cyprus,” the official told the newspaper. “The British are giving the information to the Turks and the Americans….”

“The British monitor communications about movements of the government Army,” the official noted.

The British foreign secretary has already confirmed that London is supplying Syrian insurgents with body armor and medical and communications equipment.

Syria has been experiencing unrest since March 2011. Damascus says outlaws, saboteurs, and armed terrorists are the driving factor behind the unrest and deadly violence, while the opposition accuses the security forces of being behind the killings.

The government says that the chaos is being orchestrated from outside the country, and there are reports that a very large number of the armed insurgents are foreign nationals.

Syrian President Bashar al-Assad said on August 1 that the country is engaged in a “crucial and heroic” battle that will determine the destiny of the nation.

http://www.presstv.ir/detail/2012/08/19/257033/uk-intelligence-aiding-syria-insurgents/

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Diwaniya Provides Free Fuel for Private Generators

By , June 4, 2012 5:22 am

Diwaniya Provides Free Fuel for Private Generators

The province of Diwaniya is reportedly supplying the owners of private electric generators with free fuel for three months, in order to provide services during summer season.

AIN reports that the fuel will be distributed according to the capacity of the generator, and supplies will be adjusted as required.

Summer is a particularly difficult time for electricity supply, as temperatures soar and demand for power for air conditioning and refrigeration reach a peak.

(Source: AIN)

Iraq Business News

* MPs to vote on budget bill tomorrow; Oil revenue allocation provides citizens 10m IQD ($8,500 US) each

By , February 22, 2012 7:59 am

ERBIL, Feb. 22 (AKnews) – MPs will vote on the budget bill tomorrow after receiving the Finance Committee’s final report on the proposed legislation.

Second Deputy Speaker of the House of Representatives Aref Tayfur said no parties, including the Kurds, have objected to the bill as a whole.

Kurdish MP and member of the Finance Committee Najiba Najib said another article was added to the bill earlier concerning compensation for citizens who lost their property as a result of Saddam Hussein’s Arabization policy. According to the article, compensation will be awarded provided that the court supports the claim.

AKnews previously reported that 52bn IQD ($45m) has been allotted to the budget to reimburse families affected by Arabization. Kurdish politician Shorsh Haji said this figure was sufficient for “only 5,000 families”.

“The total number of families to be compensated reaches almost 650,000 in the Kurdistan region alone,” he said at the time.

Reports estimate each family will be given 10m IQD ($8,500).

According to the final report of the Finance Committee the budget stands at 117tr IQD ($100bn). Some 19.8tr ($17bn), equivalent to 17 percent, will go to the Kurdistan Regional Government.

The news follows renewed threats from Ahrar parliamentary bloc to boycott the budget vote unless its demands are met.

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IOM Provides Emergency Assistance to Families Affected by Recent Bombings in Baghdad

By , February 1, 2012 12:54 pm

IOM distributed relief items to 50 families living in the Baghdad neighborhood of Al-Shu’ala, whose homes were destroyed or damaged by last week’s bomb attacks. Four car bombs detonated across Baghdad on 24 January killed 14 individuals and left… View full post on Iraq Updates – Latest News

Gulf Keystone Petroleum Ltd. Provides an Update on Its Ongoing Exploration and Appraisal Programme in Kurdistan

By , January 24, 2012 2:58 pm

Gulf Keystone provides an update on the Shaikan block, a major discovery with independently audited gross oil-in-place volumes of between 8 billion barrels to 13.4 billion barrels. View full post on Iraq Updates – Latest News

Gulf Keystone Petroleum Ltd. Provides an Update on Its Ongoing Exploration and Appraisal Programme in Kurdistan

By , January 24, 2012 2:58 pm

Gulf Keystone provides an update on the Shaikan block, a major discovery with independently audited gross oil-in-place volumes of between 8 billion barrels to 13.4 billion barrels. View full post on Iraq Updates – Latest News

Gulf Keystone Petroleum Provides Operational Update in Kurdistan

By , December 13, 2011 9:55 am

Gulf Keystone today provides an update on its ongoing exploration and appraisal programme in the Kurdistan Region of Iraq, which includes the Shaikan block, a major discovery with independently audited gross oil-in-place volumes of between 8 billion… View full post on Iraq Updates – Latest News

* Businessmen from United Arab Emirates: Kurdistan provides exceptionally distinctive investment opportunities

By , November 26, 2011 3:29 pm

  Called economists and businessmen from the Kurdistan Region, Thursday, economic activities in the UAE to invest more in Iraq in general and the Kurdistan Region in particular, alluding to the availability of many unique opportunities. And visit the United Arab Emirates President of Chamber of Commerce and Industry and Chairman of the Union of [...] View full post on Dinar Daddy’s Tidbits