Global News Journal
Beyond the World news headlines
from Global Investing:
Malcolm McLaren, the man who gave us The Sex Pistols, has found the real punks -- bankers. In an interview with Britain's The Observer, he says punk was not just about spiky hair and ripped t-shirts.
"It was all about destruction, and the creative potential within that. It turns out that the bankers may have been the biggest punks of all." McLaren says we are now at a transformative moment.
"We're at the end of the culture of desires; we may be going back to a culture of necessity."
God Save The Queen
from Pakistan: Now or Never?:
Pakistan has agreed with the International Monetary Fund (IMF) on a $7.6 billion emergency loan to stave off a balance of payments crisis.
Shaukat Tarin, economic adviser to the prime minister, said the IMF had endorsed Pakistan's own strategy to bring about structural adjustments. The agreement is expected to encourage other potential donors, who are gathering in Abu Dhabi on Monday for a "Friends of Pakistan" conference.
Posted by Guy Faulconbridge
Not all of Russia’s rich businessmen are queuing up for a loan under a government rescue package offering billions of dollars in state funds to bail out oligarchs who have been badly hit by the global financial crisis.
Russian billionaires Oleg Deripaska and Mikhail Fridman this week got a total of $6.5 billion in loans from a state-owned bank to help them cover foreign debts secured against stakes in major Russian companies, according to industry sources.
Posted by Gleb Bryanski
Foreign investors who filed into a Moscow hotel on Wednesday anxious to hear what Russia’s anti-crisis tsar First Deputy Prime Minister Igor Shuvalov had to say about the future of the market were disappointed to find he had not shown up.
They had many questions: the stock market is down around 70 percent since May peak, gold and forex reserves are have fallen below $500 billion for the first time in eight months as Russia props up the rouble and the economic outlook is uncertain.
European leaders have finally got their act together. After weeks of looking divided over how to tackle the global financial crisis, they agreed on joint measures at emergency talks in Paris.
Their meeting followed talks in Washington at the weekend involving G7 finance ministers and officials from the International Monetary Fund and the World Bank at which governments pledged to support the financial system. U.S. President George W. Bush said he was confident the world’s major economies could overcome the challenges.
Politicians are always looking for new ways of dealing with the press and public. These days, for example, it is quite common for them to say they “misspoke” about something – a neat way of admitting to a mistake without actually doing so. This was made popular by the Richard Nixon’s old press secretary Ron Ziegler who would famously say something one day then announce “I misspoke myself” the next day. Such statements, Time magazine reported in 1973, were “not incorrect, not misinformed, not untrue – simply inoperative, like batteries gone dead”.Is it now possible that press-shy Republican vice presidential candidate Sarah Palin has come up with a new technique set to be emulated far and wide? During her debate with Democratic counterpart Joe Biden last week, she responded to one question by saying she was not going to answer it because she wanted to talk about something else.
Probably coincidental, but British finance minister Alistair Darling did much the same thing on Wednesday as he was part nationalising Britain’s bank. “I think I heard enough to be able to answer you, or put it another way, here is the answer I am going to give anyway, regardless of what your question might be!,” he said in response to one question.
Can it be long before we hear someone say “I am going to Palin that one” or “I’ll take a Palin on that”?
The European Union has come under sharp criticism for having a fragmented approach to the financial crisis. It is exemplified by Ireland’s go-it-alone decision to guarantee all accounts and Germany’s surprise announcement after a meeting of leading members that it was taking unilateral action too.
Relief, then, that the 27 member states issued a statement on Monday that they would do what it takes to bolster citizens’ savings and build financial stability. Only problem was, they could not coordinate the announcement. First Italian Prime Minister Silvio Berlusconi released it, then Portugal. Only after a while did French President Nicholas Sarkozy weigh in. He does head the current EU presidency after all.
By Oiwan Lam
Thomson Reuters is not responsible for the content of this post – the views are the author’s alone.
According to a New York Times report in early September, the Chinese Central Bank has invested over $1 trillion in U.S. Treasury bills, bonds and debt securities. Of that, $376.3 billion has been put into the mortgage backed securities of Fannie Mae and Freddie Mac, 21% of the Chinese government’s foreign currency reserve.
Sometimes those shifts are barely perceptible — the Treaty of Versailles that ended World War One but also bred German resentment and the rise of Nazism; the Yalta conference that helped create the United Nations as a guardian of peace but also led to the Iron Curtain that divided Europe for nearly half a century; and the Great Depression (arguably the greatest catastrophe of the 20th century, says Martin Wolf).
It is only when we look back we see the world has changed.
Are we at such a point now?
John Gray in The Observer speaks of a shattering moment in America’s fall from power. Germany’s Finance Minister Peer Steinbrueck has said the United States has lost its financial superpower status. French President Nicolas Sarkozy has said we need to rebuild the whole financial system from scratch, as they did at Bretton Woods. The Telegraph called for a ‘better capitalism’.