The Great Debate UK
from The Great Debate:
Ben Bernanke in peril and the Volcker crackdown on proprietary trading by banks show two truths of the current dispensation: there is no effective hedge against politics and the reflation trade rests on fragile foundations.
Neither of these realities is particularly good for financial markets and neither is going away any time soon.
Both, too, are utterly related not just to each other, but to the Senate election in Massachusetts which installed a Republican into what had been a Kennedy seat, in the process terrifying Democrats who fear they will be sunk by association with a set of policies perceived to be favoring Wall Street.
In the aftermath, President Obama unveiled a policy authored by former Fed chief Paul Volcker, which is intended to make financial firms get out of the business of using government insurance to underwrite speculative bets; well, er, not all speculative bets, but the bad kind.
-David Kuo is director at The Motley Fool. The opinions expressed are his own -
There is a well-trodden saying that markets hate uncertainty. Elections are inevitably uncertain, so until the votes in the next election are counted we cannot be certain which party will govern the UK.
Currently, there are suggestions that no single party may get sufficient votes to form the next government outright. It is true that the Conservatives have a strong lead over its rivals. However, with a first-past-the post voting system, it only takes a small swing away from the Conservatives to change the complexion of the next parliament.
-- Margaret Doyle and George Hay are Reuters Breakingview columnists. The opinions expressed are their own. --
European banks should suffer less than their American counterparts from the Obama administration’s proposed bank tax. The president’s proposed levy on banks’ wholesale funding requirements will hit all banks with a big presence on Wall Street. But assuming that U.S. banks will be taxed on their worldwide operations, the levy will hurt them more. This could be a major bonus for European investment banks -- as long as their own governments don’t follow suit.
- John Parkinson is Senior Lecturer in Politics at the University of York, specialising in democratic theory and comparative democratic institutions. In a previous life he was a facilitator, internal communications and public relations consultant. The opinions expressed are his own. -
Last weekend 200 randomly-selected citizens got together in London for a “deliberative poll” to sort through ideas for transforming British democracy. Judging by the organizers’ blog – at www.power2010.org.uk – the participants were blown away by the experience, as ordinary people always are when they take part in serious discussion on big political questions. It’s brilliant stuff to be part of, and there should be more like it, I think.
from The Great Debate:
-- Bernd Debusmann is a Reuters columnist. The opinions expressed are his own --
Hot on the heels of what President Barack Obama called a potentially disastrous "screw-up" by the civilian intelligence community, here comes a devastating report on shortcomings of military intelligence in Afghanistan, by the officer in charge of it. He likens the work of analysts to fortune-telling.
The economic worst is past. But there are many issues left to worry about.
Start with the good news. GDP is now growing almost everywhere, while the unemployment rate is hardly rising anywhere. Businesses and consumers are less fearful. As much as half of the 20 percent decline in international trade has been erased.
Perhaps the best news is what has not happened. There have been no national defaults, countries dragged into political chaos, bitter divisions among the great powers or, with a few tiny exceptions, massive declines in consumption. The global political-economic-financial system is still in business.
from Pakistan: Now or Never?:
A Supreme Court ruling striking down an amnesty given to politicians and officials by former president Pervez Musharraf has created havoc in Pakistani politics. Among those affected on a list of 8,000 politicians and bureaucrats who were protected by the amnesty are the interior and defence ministers, who are now no longer allowed to leave the country until they clear their names in court.
"Pakistan's interior minister today found himself in the unusual position of being asked to bar himself from leaving the country," wrote Britain's Guardian newspaper.
from UK News:
The latest opinion poll in Britain showing the opposition Conservatives six points ahead of the ruling Labour party has raised the possibility of a hung parliament with no one party having an overall majority and a return to the kind of political uncertainty not seen since the 1970s.
Kenneth Clarke, the Conservatives' business spokesman, said earlier this month that a hung parliament at this point in the economic cycle would be a disaster, an assertion his boss David Cameron was quick to try to play down after the latest survey.
from UK News:
Today it was warned to stop using military imagery in its campaign material. A group of former military leaders accused the BNP, which has used photographs of spitfire fighter planes and Winston Churchill, of hijacking Britain's history for their own "dubious ends."
The distinguished generals said this tarnished the reputation of the armed forces and called on them to "cease and desist."