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Mike Dicks, chief economist and blogger at Barclays Wealth, has identified what he sees as the three biggest problems facing the global economy, and conveniently found that they are linked with three separate regions.
First, there is the risk that U.S., t consumers won't increase spending. Dicks notes that the increase in U.S. consumption has been "extremely moderate" and far less than after previous recessions. His firm has lowered is U.S. GDP forecast for 2011 to 2.7 percent from a bit over 3 percent.
Next comes the euro zone. While the wealth manager is not looking for any immediate collapse in EMU, Dicks reckons that without the ability to devalue, Greece and other struggling countries won't see any great improvement in competitiveness. Germany, in the meantime, has sped up plans to cut its own deficit. It leaves the Barclays Wealth's euro zone GDP forecast at just 1 percent for next year.
Finally, Asian growth is under threat from tightening policies. Dicks says this is the least problem of the three, but there are indications that powerhouse China needs a period of slower growth to get things under control.
The report says Goldman Sachs chief executive Lloyd Blankfein"proudly pays himself more in a year than most of us could ever dream of — $68m in 2007 alone, a record for any Wall Street CEO, to add to the more than $500m of Goldman stock he owns" .
It's hard to watch France's political and cultural elite rush to support filmmaker Roman Polanski against extradition to the United States on a decades-old sex charge and not wonder exactly how they interpret the national motto "liberté, égalité, fraternité." It's tempting to ask whether they're defending the liberty to break the law and skip town, respecting the equality of all before the law and championing a brotherhood of artists who can do no wrong. (Photo: Roman Polanski, 19 Feb 2009/Hannibal Hanschke)
Here in Paris, Foreign Minister Bernard Kouchner declared the arrest was "a bit sinister ... frankly, (arresting) a man of such talent recognised around the world, recognised in the country where he was arrested -- that's not very nice." He and his Polish counterpart have written to Secretary of State Hillary Clinton about the issue. Culture Minister Frédéric Mitterrand said "just as there is a generous America that we like, there's also an America that scares us, and that's the America that has just shown us its face." Directors, actors and intellectuals have been signing a petition demanding Polanski's immediate release.
Our post "Catholic comments on Ted Kennedy, pro and con" showed readers were deeply split on whether the late senator should have a Roman Catholic funeral. The naysayers argued that his support for choice on abortion and other disagreements with Church doctrine disqualify him from a religious ceremony. Those for a church funeral argued that he helped advance many causes championed by Catholic social teaching.
Those opposing a Mass of Christian Burial for Kennedy predominated, but not all readers take the time to write a comment. One-click poll questions sometimes give a different picture from comment pages. So here's a simple question:
It's starting to look like the Summer of Love. Two reasons: The recovery is taking on a L-U-V shape globally, and it's going to require huge amounts of love and nurturing to keep growth alive.
L stands for Europe, where slowness to confront deep damage and write down the remaining $500 billion odd in bad bank debt, mean rebuilding will be protracted and painful.
The United States sports a U, bouncing along bottom right. But its financial giants swallowed harsh medicine early and the U.S. has the flexibility to stage an impressive rebound, if not undone by a fast-rising jobless rate at 9.5 percent and heavily indebted consumers.
V stands for Asia (ex Japan), the surprise region showing resiliency, thanks to its rapid Q4/Q1 inventory workdown and huge infrastructure spend by China.
Like the Summer of Love 41 years ago, it is a drug-fueled affair. G20 governments are peddling $820 billion in stimulus this year, equivalent to 2 percent of GDP. Central bankers are spending even more. The Fed has doubled its balance sheet to $2.04 trillion the past 12 months.
President Barack Obama has just pledged to make a new start for United States relations with the Muslim world: "To the Muslim world, we seek a new way forward, based on mutual interest and mutual respect," he said in his inaugural address. "To those leaders around the globe who seek to sow conflict, or blame their society's ills on the West - know that your people will judge you on what you can build, not what you destroy. To those who cling to power through corruption and deceit and the silencing of dissent, know that you are on the wrong side of history; but that we will extend a hand if you are willing to unclench your fist." (Photo: President Obama delivers his inaugural address, 20 Jan 2009/Jason Reed)
It's not clear what he plans to do. One idea he's mentioned is to deliver a major speech in a Muslim country in his first year in office. There's already a lively discussion on the web about where he should go. During his speech, CNN showed a shot of the crowd with some people holding up signs urging him to deliver the speech in Morocco.
Now here's an interesting question. The New York Times reports that President-elect Barack Obama wants to make "a major foreign policy speech from an Islamic capital during his first 100 days in office." But from which one? As NYT staffer Helene Cooper explains, it's a question that's fraught with diplomatic, religious and personal complications. After a day of calling around Washington, she found a consensus:
It’s got to be Cairo. Egypt is perfect. It’s certainly Muslim enough, populous enough and relevant enough. It’s an American ally, but there are enough tensions in the relationship that the choice will feel bold. The country has plenty of democracy problems, so Mr. Obama can speak directly to the need for a better democratic model there. It has got the Muslim Brotherhood, the Islamist organization that has been embraced by a wide spectrum of the Islamic world, including the disenfranchised and the disaffected.