The Great Debate UK
from The Great Debate:
Sixty years ago in London, Queen Elizabeth was crowned in succession to her father, the now famously stammering chain-smoker George VI. For most Brits the queen’s Diamond Jubilee is a chance to celebrate her reign with street parties, fireworks, concerts, and pageants along the Thames. They will be toasting the woman who has so far presided over 12 prime ministers, including perhaps the greatest of them all, Winston Churchill.
It is a mark of Elizabeth’s benign demeanor and quiet charm that she will be celebrated not only in the 54 member states of the Commonwealth, the independent nations that were Britain’s former colonies and dominions, but around the world, too. Few countries do pomp as well as the Brits, as the weddings of Prince William to Kate and Prince Charles to Diana attest. But not all Americans, when they watch the Jubilee, will grasp the true role of the queen.
She is a constitutional monarch, which means she wields no political power. She personifies the state and opens sessions of Parliament by reading out the new legislative program her prime ministers have written, as if she herself had decided what the people need. She keeps her views strictly to herself and does as she is asked by elected officials, whether it is greeting fellow heads of state or dubbing new knights with a sword.
On the face of it, there is nothing much the American Republic can learn from the monarchy. In the Revolutionary War, we decided monarchy was not for us. George III, the king who lost America, was not only clinically mad. He was crazy to have let America go, but that’s another matter. America has steamed on without a monarch ever since and has never looked back.
Wednesday’s panic in the bond markets drove yields down to unprecedented lows in U.S., UK and Germany. The stampede into British and American debt is no surprise, since both countries represent a rock-solid guarantee of repayment in their own currency (though heaven knows how much lenders will be able to buy with the money in ten or twenty years’ time), but why the rush into Bunds?
One possible interpretation, which can never be discounted, is pure panic, based on nothing more rational than faith in Germany’s sleek cars, orderly cities and conservative bankers. But that is unlikely to be the whole story, if only because the trend has been apparent for too long to be put down to knee-jerk reaction.
from Africa News blog:
By Cosmas Butunyi
The dust is finally settling on the storm that was kicked off in South Africa by a controversial painting of President Jacob Zuma with his genitals exposed.
The country that boasts one of the most liberal constitutions in the world and the only one on the African continent with a constitutional provision that protects and defends the rights of gays and lesbians , had its values put up to the test after an artist ruffled feathers by a painting that questioned the moral values of the ruling African National Congress .
The upcoming elections in Greece have gained added significance in recent weeks. It’s not just the Greek people choosing their next leader; it is also being presented as a referendum on euro membership. Either vote for a pro-bailout party and stay in the euro zone or vote anti-austerity and you’re out. But is the outcome of the vote really that clear cut? Although three quarters of Greeks want to remain in the euro zone, 80 percent want the terms of their second bailout to be re-negotiated. The elections might not be such a foregone conclusion after all.
It’s worth looking at the two potential “choices” currently being presented to the Greek people. If they choose a “pro-bailout” party that doesn’t mean that champagne corks will be popped in Berlin. Those in power in Athens need to answer to the electorate who will have given them a mandate to challenge Germany and its insistence on tough fiscal reform in return for bailout cash. So if Europe’s authorities think that the election of New Democracy (one of the parties who pledged to stick to fiscal reform post the election) is enough to keep Greece on the fiscal straight and narrow, think again.
from The Great Debate:
Watching Tony Blair appear this week before the British judicial inquiry into press standards in London has left me feeling a little queasy. What began as an open-minded investigation into how to protect individuals from the snooping of the press in the age of the Internet has turned into a show trial to shame politicians who fell under the spell of Rupert Murdoch.
Now, heaven knows, I’m no apologist for Murdoch. His cynical approach to his readers and viewers and employees belies the fact that he is descended from sternly moral Scottish Presbyterians. He declares that the buck stops with a newspaper owner when one of his papers or journalists or printers fouls up, but when widespread illegality happens in his name, right under his nose, he forgets his fine words and lets it be known he has no intention of stepping down from his dual role of CEO and chairman of News Corp.
from The Great Debate:
If the euro really is on the verge of collapse, as many pundits are now proclaiming, how come it is still so highly valued against other currencies, including the U.S. dollar?
That may sound like a crazy question, given the euro’s much-publicized decline over the past couple of weeks. It has been dropping as the possibility grows that Greece may seek to pull out of the 17-nation currency union following parliamentary elections there in mid-June. That scenario of a “Grexit” has spooked financial markets and pushed governments and business around Europe to draw up contingency plans.
from The Great Debate:
Arnaud Montebourg, a member of the French parliament, has a problem with the iPhone. He thinks consumers in France should pay more for it than they already do. Why? Because, he says, the iPhone is made by “exploited” laborers in China who are taking away the jobs of French workers and the best way to redress that is by putting in place trade barriers and taxes that will stop “excessive imports.”
Then there’s Renault in Morocco. When the French automaker opened a new factory in Tangiers in February, Montebourg decried the move as “a humiliation for French industry,” because Renault hadn’t built the plant in France even though the French state is an important shareholder.
Who wouldn’t want to have been an early investor in Facebook? The graffiti artist who spray painted the walls of Facebook HQ decided to take stock rather than a paycheck and will be $150 million dollars richer as a result.
Facebook is one of the biggest ever IPOs in the U.S. and at the end of last week it even managed to knock Greece out of the headlines and was credited with boosting market sentiment.
On May 23, 2012, the chief negotiators of the five permanent members of the Security Council plus Germany will meet their Iranian counterparts in Baghdad to discuss Iran’s nuclear programme. This follows last April’s meeting in Istanbul, when negotiations were resumed after more than a year’s inaction. This summit will test whether Iran is serious and whether concrete results can be achieved.
So we’ve got the fresh Greek elections we expected and markets, despite the inevitability that we would get here, have reacted with some alarm. European stocks have shed around 1 percent, and the harbour of German Bunds is pushing their futures price up in early trade. The Greeks will try to form a caretaker government today to see them through to elections expected on June 17.
The key question is whether the mainstream parties can mount a convincing campaign second time around, playing on the glaring contradiction in SYRIZA’s position (no to bailout, yes to the euro) and essentially turning the vote into a referendum on euro membership, which the overwhelming majority of Greeks still support. Don’t count on that. SYRIZA remains ahead in the polls.
To be able to pull it off, PASOK and New Democracy will need some help from Europe. There have already been hints from Brussels that if a pro-bailout government is formed, Athens could be given some leeway on its debt-cutting terms. But equally other voices are saying there is no more room for manoeuvre.