President Sarkozy’s Move to ‘Abolish Sunday’ Sparks Hostility
Photo: TimesOnline
TIMES ONLINE: Street markets, long family lunches, strolls in the park . . . For the French, Sunday is a great tradition, a time to enjoy the finer things in life while other silly countries such as Britain keep working. So President Sarkozy’s plan to “abolish Sunday” and let the shops open is running into a hail of criticism.

Parliament is due to pass a Bill tomorrow to ease France’s strict trading laws, but hostility to it is so widespread that some MPs in Mr Sarkozy’s own centre-right camp predict that it could unravel before becoming law.

The President’s plan to abolir le dimanche is being resisted by an unlikely coalition of interests, including the centre and left-wing Opposition, the Roman Catholic Church, the trade unions and small shopkeepers who fear losing their existing Sunday business to supermarkets. Up to 60 per cent of the public, according to polls, are also against a scheme that will reverse the century-old right to a day of rest.

The President has made Sunday shopping a personal crusade since he promised it in his 2007 election campaign under his slogan of “work more to earn more”. He pillories France as a backward exception to the rest of Europe and has said that he was ashamed when Michelle Obama wanted to take her daughters shopping in Paris on a Sunday last month — he had to arrange a special opening for her at a Left Bank boutique.

“How are we supposed to explain to them that we are the only country where shops are closed on Sunday?” he asked. “We are a country that takes pride in having more tourists than any other, yet we believe the shops must be shut on the day there are the most visitors.” >>> Charles Bremner | Monday, July 13, 2009

Landmark Parisian Bookshop to Close
THE INDEPENDENT ON SUNDAY: Another Paris landmark is no more. Brentano’s, an American bookshop whose customers have ranged from Ernest Hemingway to Johnny Hallyday, has been forced to close by exploding rental demands.

After 114 years, the bookshop’s prime site on the Avenue de L’Opéra, close to the Louvre, is expected to become, like much of the rest of the avenue, a designer label shop catering for the Japanese tourist trade.

Although regarded by the English-speaking community as a Paris institution, Brentano’s has been undermined by the recession, by the internet and, above all, by soaring commercial rents in the heart of Paris. Its landlord, the bank BNP Paribas, increased the rent several years ago from Euros 75,000 a year to Euros 200,000.

Brentano’s, founded in 1895 and originally part of an US-based chain of the same name, was once a centre of American cultural life in the French capital. "The avenue de L’Opera used to be American. It has become Japanese," said Chantal Bodez, last owner of the shop with her husband. >>> By John Lichfield in Paris | Sunday, July 12, 2009

Obama's Climate of Fear
TOWNHALL: Recently I had a long lunch with an old friend. He sits on the board of one of the largest and most successful publicly traded regional banks in America. He got his seat when that regional bank acquired the very successful community bank he built from the ground up. I will not name him or this bank, but I will pass on a few things he said to me.

He said, “Our bank’s leadership team and others I know at the local or regional level feel paralyzed and intimidated by the climate of fear created by the Obama administration. We believe we are targets of a very deliberate conspiracy.

“The new and proposed regulations will remove every competitive advantage of the community bank, and make every bank identical, forced to operate exactly as does Bank of America,” he explained. “Then, absent competitive opportunity, all of the independent banks will be greatly de-valued and handicapped. They’ll be vulnerable and easily rolled up into the handful of remaining giants … the small bank’s wealth made into fresh food for the insatiable hunger of the big banks’ deficits and losses. This is, I and others believe, the next step in Obama’s plan to take total control of the financial system and money supply, a requirement of dictatorship.“

What is most significant about these statements is the person making them. This is not some freak like the fellow Mel Gibson portrayed in the movie “Conspiracy Theory.”. He’s not somebody stockpiling food in a cabin hidden away in the woods, to escape to when anarchy erupts. Not anybody you would expect to hear express such thoughts. And he’s not a lone voice.

Another friend is the CEO of a mid-sized company that had been on an impressive trajectory of growth for the past three years but is now stalled. He and his advisers have reversed their viewpoint in the last few months. They are eager to sell the company if possible now rather than later. Why? They believe Obama is deliberately, systematically destroying the economy as a whole and is specifically targeting small business for extinction – because it’s too difficult to exercise dictatorial control over millions of small enterprises. >>> Dan Kennedy | Friday, July 10, 2009

Big City Bonuses Are Back
MAIL Online: City banks are preparing to lavish record bonuses on staff less than a year after bringing the world economy to the brink of meltdown.

Many high-flying traders and dealmakers are looking forward to ' mindblowing' payouts on a par with the rewards handed out at the height of the banking boom in 2007.

This is despite many of the banks only being able to turn a profit because they have been bailed out with taxpayers' money.

Wall Street giant Goldman Sachs is expected to confirm next week that it will pay an average of almost £400,000 in pay and bonuses to each of its 5,500 London-based staff - a total of £2.2billion.

Its profits are soaring on the back of the $6.2billion it received from the U.S. taxpayer last year.

Royal Bank of Scotland recently revealed chief executive Stephen Hester was in line for a £9.7million pay package if he brings the bailed-out bank's share price up to 70p.

Another bailed- out financial giant, Citigroup, is raising basic pay for many of its investment bankers and traders by up to 50 per cent, to make up for the loss in bonus pay.

Nationalised U.S. insurance firm AIG is planning to pay millions of dollars more in bonuses to dozens of top bosses across the world.

Last year it paid out more than £100million despite being rescued by the U.S. government after racking up £60billion in losses from reckless bets on toxic debt.

Credit Suisse, Deutsche Bank, JP Morgan, Morgan Stanley and Barclays are also planning major rewards.

This is despite their actions triggering a recession which is expected to cost a million Britons their jobs.

The return of 'business as usual' to the banking sector makes a mockery of the Government's claim to have stamped out the culture of greed and reckless risk taking in the banking industry. Big City bonuses are back! Less than a year after banks took billions in taxpayer-funded bailouts... >>> Simon Duke | Saturday, July 11, 2009

French MPs Debate Sunday Shopping
BBC: Parliament in France has begun debating a law that would allow more shops to open on Sundays.

Most retailers have been banned from trading on Sunday since 1906, when a law enshrined it as a day of rest.

But President Nicolas Sarkozy says the pace of modern life has overtaken tradition, and France has ended up behind the times.

Trade unions and many members of parliament across the political divide have criticised the planned law.

The bill would see the establishment of special tourist areas and commercial zones.

Employees would get double their normal pay for working on a Sunday.

Many big chain stores in France already ignore the current laws banning Sunday trading - and have to pay large fines for opening their doors.

Bakeries, butchers' shops and other small businesses are allowed to open - but only until noon. >>> | Tuesday, July 07, 2009

Papst will Krise durch Regulierung überwinden: Enzyklika «Caritas in veritate» in Rom vorgestellt
NZZ Online: Am Tag vor dem G-8-Gipfel in Aquila hat Papst Benedikt XVI. seine dritte Enzyklika vorgestellt. Das Oberhaupt der römisch-katholischen Kirche mahnt darin die Regierungen, die nationalen Ökonomien stärker zu regulieren, um die weltweite Finanz- und Wirtschaftskrise zu überwinden

Benedikt XVI. hat ungezügeltem Kapitalismus und unregulierten Marktkräften eine Absage erteilt. In der am Dienstag veröffentlichten Sozialenzyklika «Caritas in veritate» (Liebe in Wahrheit) fordert der Papst die Ausrichtung wirtschaftlichen Handelns an ethischen Zielen.

Das Oberhaupt der römisch-katholischen Kirche mahnt die Regierungen, die nationalen Ökonomien stärker zu regulieren, um die weltweite Finanz- und Wirtschaftskrise zu überwinden und ihre Wiederholung zu vermeiden. Die Krise wie auch die Globalisierung sollten als Chance genutzt werden, eine Welt in Gerechtigkeit und Solidarität zu bauen. >>> sda/dpa/Reuters/ap | Dienstag, 07. Juli 2009

«Caritas in veritate»:

In English >>>

En français >>>

Some Find U.K. Bailout Too Onerous
THE WALL STREET JOURNAL: LONDON -- Six months after the U.K. government scrambled to launch new bailout measures for Britain's foundering banks and economy, several of those efforts are languishing with few takers.

In January, for example, the British government created a guarantee program meant to revive the dormant market for asset-backed securities. The program aims to spur purchases of banks' asset-back securities, or bundled consumer loans, by guaranteeing them for buyers.

The guarantees were made available in April, but since then, none of the major U.K. banks has issued a security with such a guarantee. Bankers say it is too expensive; the government says the program is under review. So far, no changes to its terms have been made, and the program is set to expire in October.

The flop is among several misfires by the U.K. government in recent months among programs that haven't drawn interest from the banks and businesses they were intended to help. An effort to give firms trade insurance, for example, has seen only limited participation. The same is true of a loan guarantee for small businesses, which has been disregarded because it requires owners to put their own collateral on the line.

The snubbed bailout programs are a testament to the difficult balancing act governments face when attempting to aid their financial sectors and economies: They don't want to give banks and businesses a free ride, but fail to accomplish anything if their terms are not attractive enough. >>> By SARA SCHAEFER MUÑOZ and ALISTAIR MACDONALD | Monday, July 06, 2009

Schweizer Banken kündigen ihren US-Kunden: Befürchtete Steuerkonflikte und zu hoher Aufwand
NZZ Online: Der Konfrontationskurs der amerikanischen Steuerbehörden gegenüber der UBS schüchtert die Schweizer Banken ein. Um jedes Risiko zu vermeiden, kündigen Institute wie die Zürcher Kantonalbank oder die Privatbank Mirabaud jetzt ihren Kunden aus Übersee.

Immer mehr Schweizer Banken ziehen sich aus dem Geschäft mit in den USA steuerpflichtigen Personen zurück. Institute wie die Zürcher Kantonalbank (ZKB) oder die Privatbank Mirabaud kündigen die Beziehungen mit in den USA ansässigen Kunden. Andere Institute wie die Credit Suisse (CS) bieten den Kunden immerhin an, ihr Geld in eigens gegründete Gesellschaften zu transferieren, die in den USA lizenziert sind und der dortigen Aufsicht unterstehen. Die Schweizer Banken reagieren so auf den wachsenden Druck der amerikanischen Steuerbehörden. >>> det. | Samstag, 04. Juli 2009

BT Offers Thousands of Workers 'Holiday of Lifetime' on Quarter Pay
THE TELEGRAPH: BT has offered tens of thousands of its employees the chance to go on long-term holiday in return for taking a drastic pay cut.

The former state telecoms company - one of Britain's biggest private employers with 106,000 staff - is trying to save money as it struggles to cope with the impact of the recession.

BT has proposed that employees take up to a year off, in return for taking a 75 per cent pay cut. To encourage as many workers to take up of the offer, the company will pay their reduced salary as an upfront cash payment.

It is also offering staff a one-off payment of £1,000 if they switch from full-time to part-time work.

Parents are also being offered the opportunity to work only in school term times, so they can spend the summer holidays with their children.

The radical proposals - leaked to The Daily Telegraph - are the latest example of the private sector having to adopt increasingly desperate and inventive measures to tackle the recession by cutting costs without sacking staff.

British Airways last month asked thousands of its staff to work for free during the summer, and to switch to part time hours. Many car manufacturers have sent workers home on half pay for months at a time. >>> Rupert Neate and Harry Wallop | Friday, July 03, 2009

Benedict Brogan: Cutting Britain's Defence Budget to Pay Other Bills Is a False Economy
THE TELEGRAPH: Benedict Brogan believes both the main parties are missing the point of maintaining a nuclear deterrent

A free people, George Washington said, must be constantly awake against the insidious wiles of foreign influence. At any moment, from any quarter, trouble may pounce to put the sovereignty of the nation under threat. Defending the realm demands eternal vigilance.

Yet in this particular kingdom we are nodding off, distracted by the agonies of a financial crisis and the positioning of leaders vying for power. A time of great uncertainty abroad is met by political indifference at home.

From climate change and resource shortages, to cyber-warfare and disorderly states, to Islamist terrorism and international criminal networks, the dangers are multiplying. And then there are the unknown unknowns, the things we don't know that we don't know that kept Donald Rumsfeld up at night. Thirty years from now, who is to say that Russia will not have reverted to its expansionist ways, or that a nuclear-armed Caliphate of Waziristan will not be parked where Pakistan used to be?

Which is what makes British foreign policy, and our capacity to implement it, such a vital part of what a government does. It remains essential to us that our diplomatic effort be played out in the international premier league.

Listen to the whispers coming out of the chancelleries of Europe or the US state department, however, and the talk is of relegation. Britain is slipping down the rankings as Gordon Brown focuses on a domestic fight for survival. Ominously, there is no sign that the prospect of having David Cameron in charge will do anything to reverse the trend.

As so often with a national share price, it is a concatenation of decisions and behaviours that drives it downwards. Financial mismanagement, the prospect of a debt downgrade, an inability to produce the necessary resources in Iraq or Afghanistan, loose talk of defence cuts and an end to Trident, speculation about giving up our permanent seat on the UN Security Council, the threat of legal action against serving intelligence officers, and confusion over the Iraq inquiry have helped contribute to a steady loss of credibility.

The strength of our commitment to future defence is this week's wobble. Having frittered away billions since 1997, Mr Brown, with the tacit support of the Conservatives, is eyeing up those cash-draining Cold War programmes. It is tempting to detect the hand of his friends in the unions behind the well-timed leaks about cost over-runs on the two planned aircraft carriers, while the top brass fall over each other to volunteer the weapons programmes of rival services for the chop. >>> Benedict Brogan | Wednesday, July 01, 2009

Die zu Guttenbergs: Karl-Theodor zu Guttenberg im Interview

Obama’s Mistakes: Chancellor Merkel Visits the Debt President
SPIEGELONLINE INTERNATIONAL: The occupant of the White House may have changed recently. But the amount of ill-advised ideology coming from Washington has remained constant. Obama's list of economic errors is long -- and continues to grow.

The president may have changed, but the excesses of American politics have remained. Barack Obama and George W. Bush, it has become clear, are more similar than they might seem at first glance.

Ex-President Bush was nothing if not zealous in his worldwide campaign against terror, transgressing human rights and breaking international law along the way. Now, Obama is displaying the same zeal in his own war against the financial crisis -- and his weapon of choice is the money-printing machine. The rules the new American president is breaking are those which govern the economy. Nobody is being killed. But the strategy comes at a price -- and that price might be America's position as a global power.

In his fight against terrorism, Bush had the ideologue Dick Cheney at his side. "We must take the battle to the enemy," he said -- and sent out the bomber squadrons toward Iraq on the basis of mere suspicion. The result of the offensive is well known.

Obama's Cheney

Obama's Cheney is named Larry Summers. He is Obama's senior-most economic advisor, and like the former vice president, he is a man of conviction. The financial crisis may be large, but Summers' self-confidence is even larger. More importantly, President Barack Obama follows him like a dog does its master.

The crisis, Summers intoned last week at a conference of Deutsche Bank's Alfred Herrhausen Society in Washington, was caused by too much confidence, too much credit and too many debts. It was hard not to nod along in agreement.

But then Summers added that the way to bring about an end to the crisis was -- more confidence, more credit and more debt. And the nodding stopped. Experts and non-experts alike were perplexed. Even in an interview following the presentation, Summers was unable to supply an adequate explanation for how a crisis caused by frivolous lending was going to be solved through yet more frivolity. >>> Gabor Steingart | Thursday, June 25, 2009

President Obama Sets Out Biggest Overhaul of Wall Street in Decades
THE TELEGRAPH: President Barack Obama has set out the biggest overhaul of the regulation of Wall Street in more than 50 years in an effort to prevent a repeat of the financial crisis.

President Barack Obama delivers remarks on the new comprehensive regulatory reform plan, Wednesday, June 17, 2009, in the East Room of the White House. Photo: The Telegraph
The central elements of the plan unveiled on Wednesday are:

• An extra layer of regulation for the biggest financial firms in America
• A new agency to scrutinise financial products sold to consumers
• Bringing hedge and private equity funds under federal scrutiny

At the White House, President Obama said that the financial crisis had been a "failure of the entire system." The President went on that "an absence of oversight engendered systematic, and systemic, abuse.”

The proposals, which have been put together by the Treasury, are likely to trigger a political fight in Congress. The financial crisis and the subsequent recession helped propel Obama into the White House and he has said that a 'sweeping overhaul' of the system is one of his top priorities. >>> By Telegraph staff | Wednesday, June 17, 2009

New Dark Age Obamonomics! US Cities May Have to Be Bulldozed in order to Survive
THE TELEGRAPH: Dozens of US cities may have entire neighbourhoods bulldozed as part of drastic "shrink to survive" proposals being considered by the Obama administration to tackle economic decline.

The government looking at expanding a pioneering scheme in Flint, one of the poorest US cities, which involves razing entire districts and returning the land to nature.

Local politicians believe the city must contract by as much as 40 per cent, concentrating the dwindling population and local services into a more viable area.

The radical experiment is the brainchild of Dan Kildee, treasurer of Genesee County, which includes Flint.

Having outlined his strategy to Barack Obama during the election campaign, Mr Kildee has now been approached by the US government and a group of charities who want him to apply what he has learnt to the rest of the country.

Mr Kildee said he will concentrate on 50 cities, identified in a recent study by the Brookings Institution, an influential Washington think-tank, as potentially needing to shrink substantially to cope with their declining fortunes.

Most are former industrial cities in the "rust belt" of America's Mid-West and North East. They include Detroit, Philadelphia, Pittsburgh, Baltimore and Memphis.

In Detroit, shattered by the woes of the US car industry, there are already plans to split it into a collection of small urban centres separated from each other by countryside.

"The real question is not whether these cities shrink – we're all shrinking – but whether we let it happen in a destructive or sustainable way," said Mr Kildee. "Decline is a fact of life in Flint. Resisting it is like resisting gravity." >>> By Tom Leonard in Flint, Michigan | Friday, June 12, 2009

FDA to Regulate Tobacco

«Ich bin alt und arm, habt Mitleid mit mir»
TAGES ANZEIGER: Einst war sie eine der reichsten Frauen der Welt, stolze Besitzerin von 3000 Paar Schuhen. Jetzt hat Imelda Marcos, die Witwe des früheren philippinischen Diktators, angeblich kein Geld mehr.

Tränen der Armut: Imelda Marcos. Bild dank dem Tages Anzeiger
Mit Tränen in den Augen stand die glamouröse First Lady der Philippinen in dieser Woche vor Gericht in Manila. Immer wenn Imelda Marcos die philippinische Hauptstadt verlassen will, muss sie sich der Justiz stellen - dies als Konsequenz der andauernden rechtlichen Probleme der Familie Marcos, die vor mehr als 20 Jahren begannen. Unter anderem hatte sich die Familie des früheren philippinischen Diktators Ferdinand Marcos riesige Vermögen angeeignet, die zum Teil auf Schweizer Banken parkiert wurden. >>> vin | Freitag, 12. Juni 2009

Einkünfte: Obama will Managergehälter kontrollieren
WELT ONLINE: Milliarden an Staatshilfen für Unternehmen bei gleichzeitig überhöhten Managergehältern – US-Präsident Obama will nun die Einkünfte der 100 bestbezahlten Beschäftigten bestimmter Konzerne überprüfen lassen

Barack Obama erhöht den Druck auf die Spitzenverdiener in den USA. Staranwalt Kenneth Feinberg soll künftig die Einkünfte der 100 bestbezahlten Beschäftigten in Großkonzernen überprüfen, die milliardenschwere Staatshilfen erhielten, teilte das US-Präsidialamt mit. Dazu zählten die Chefs der Bank of America, der Großbank Citigroup und des Versicherers AIG. Feinberg leitete zuvor den staatlichen Entschädigungsfonds für die Opfer der Anschläge vom 11. September 2001.

Die hohen Gehälter und Bonuseinkünfte der Führungskräfte von Banken und anderen Unternehmen, die in der Finanzkrise ins Trudeln geraten und plötzlich auf Staatsgelder angewiesen waren, hatten in den USA zuletzt Entrüstung ausgelöst.

Die Regierung fordert zudem neue Gesetze, um gewöhnlichen Aktionären mehr Mitsprache bei der Bezahlung von Firmen-Chefs einzuräumen. Zudem verlangte US-Finanzminister Timothy Geithner vom Kongress, der Börsenaufsicht SEC neue Befugnisse bei der Entlohnung von Managern zu erteilen.

"Die Finanzkrise hat viele Ursachen - die Praxis der Bezahlung von Managern hat ebenfalls dazu beigetragen", sagte Geithner. Einkommen müssten an Leistung gekoppelt werden. Eine staatliche Begrenzung für Spitzengehälter solle es aber nicht geben. Allerdings sollten Aufseher und Aktionäre Managergehälter besser kontrollieren können. >>> © ZEIT ONLINE, reuters | Donnerstag, 11. Juni 2009

Britain Will 'Obviously' Join Euro Says Mandelson
Euros: Google Images
THE TELEGRAPH: Britain "obviously" remains committed to joining the euro following the currency's "success" in helping its members to weather the economic crisis, Lord Mandelson said.

The newly promoted First Secretary of State, speaking in Berlin, hailed the euro as a saviour that had brought stability to the European Union during financial turmoil.

"It is perfectly clear that the euro has been a great success in anchoring its eurozone members during this financial crisis," he said.

"Imagine where all of us would have been if it hadn't. I hope people will recognise that this represents a major vindication for the single currency."

Asked if the British Government would consider joining the euro, Lord Mandelson replied: "Does it remain an important objective for Britain to find itself in the same currency as that single market in which it interacts? Obviously yes."

He added: "That has to be a decision taken on the right terms in the right circumstances and conditions and therefore at a future time than we have now." >>> By Bruno Waterfield in Brussels | Thursday, June 11, 2009

Kalifornien: Arnold Schwarzeneggers Paradies geht unter
WELT ONLINE: Kalifornien, das Land von Gouverneur Arnold Schwarzenegger, das seit jeher zwischen Chaos und Verheißung taumelt, steht am Rande des Ruins. Unternehmen entlassen, Wohnungen werden zwangsgeräumt. Je größer der Wohlstand, so scheint es, desto unerbittlicher schlägt die Krise zu. Ein Mythos verblasst.

Bild dank der Welt
Wo es im Westen nicht mehr weiter geht, bei Capetown, Kalifornien, sind die Blumenkinder noch zu finden. Hier beult sich Amerika am weitesten ins Meer, wenn man Alaska und die Aleuten außer Acht lässt. Dafür krümmt der Highway 101 sich ostwärts durch die Landschaft.

In den Hügeln zwischen Autobahn und Küste siedeln Alt-Hippies, die einem misstrauisch begegnen, weil sie neben Bio-Obst vor allem Hanf anbauen. Die Behörden lassen sie in Ruhe.

Wer sich eine Reise an den Rand der westlichen Zivilgesellschaft sparen möchte, lese T.C. Boyles „Budding Prospects“ über das Scheitern dort. Schon weil der deutsche Titel der Satire heute treffender erscheint: „Grün ist die Hoffnung“.

Grün war auch die Hoffnung Arnold Schwarzeneggers. Als der Schauspieler aus Österreich 2003 als Gouverneur sein Amt antrat, platzten die Tagträume vom Neuen Markt. Der Terminator fackelte nicht lange und beschloss, den Sonnen- in einen Solarstaat zu verwandeln. Seither heißt er „Jolly Green Giant“.

Er zerstampfte herkömmliche Autos, um für das Hybridauto zu werben. Er verbannte Plastiktüten. Er verfügte, bis zum Jahr 2020 auf ein Viertel aller Treibhausgase zu verzichten. Schwarzenegger legte mehr Wert auf die CO2-Bilanz als auf den Staatshaushalt.

Nun bricht die Immobilien- und Finanzmarktkrise über Kalifornien herein und macht nicht nur die grünen Hoffnungen zunichte. Es geht nicht mehr um die Frage, ob sich ausgerechnet Kalifornien klimaneutral verhalten sollte. Sondern um ein selbst kaum noch erneuerbares Land.

Republikanische Parteifreunde verhindern Schwarzeneggers Konjunkturpakete. Das Gemeinwesen wird stillgelegt. Auf Baustellen herrscht Ruhe, Schulen bleiben zu. Im Silicon Valley gehen nun auch in der Ökoindustrie die Lichter aus. Es wird entlassen, es wird zwangsgeräumt, es werden Zuschläge erhoben auf Konsumgüter und auf Benzin, auf Kaliforniens Heiligtümer. Je mehr Wohlstand, umso unerbittlicher die Krise. Es geht um den Mythos Kalifornien und um sein Verblassen. >>> Von Michael Pilz | Mittwoch, 10. Juni 2009

Britain Isolated as EU Tightens Grip on City
THE TELEGRAPH: Britain has been unable to block plans for an EU regulatory machinery with binding legal powers, securing only a loose agreement at a key meeting of EU finance ministers that any proposals should not interfere with budget and taxation policy.

A joint statement yesterday said that legislation to be drawn up by Brussels this autumn “should ensure that such powers should not impinge in any way on the fiscal responsibility of members of states”.

Chancellor Alistair Darling said Britain had upheld the principle that “taxation is clearly a matter for member states”. However, there was no change in the crucial proposal to give EU bodies the ultimate power to override national regulators in areas of banking, insurance and securities.

The Commission aims to create three “authorities” with their own staff, full-time president and independent budget. If there is a dispute between regulators from EU countries over how to proceed, these EU bodies can “settle the matter” by binding mediation. The European Court would have final jurisdiction. The wording would appear to reduce Britain’s Financial Services Authority (FSA) to a subservient arm of the EU apparatus, limited to “daily oversight”. Britain does not have a veto since legislation that affects the “internal market” is decided by qualified majority vote (QMV).

While some East European states share British concerns, Mr Darling is largely isolated in trying to defend the interests of the City of London. EU leaders will grapple with the subject at a Brussels summit later this month.

There is widespread suspicion that Paris and its allies have seized on the financial crisis to rein in Anglo-Saxon capitalism and impose their Colbertiste ideology on the City. >>> By Ambrose Evans-Pritchard | Tuesday, June 09, 2009

Overseer to Set Executive Pay at Rescued Companies
THE NEW YORK TIMES: WASHINGTON—The Obama administration on Wednesday appointed a compensation overseer with broad discretion to set the pay for 175 top executives at seven of the nation’s largest companies, which have received hundreds of billions of dollars in federal assistance to survive.

The mandate given to the new compensation official, Kenneth R. Feinberg, a well-known Washington lawyer, reflects the federal government’s increasingly intrusive role in the corporate affairs of deeply troubled companies. From his nondescript office in Room 1310 of the Treasury building, Mr. Feinberg will set the salaries and bonuses of some of the top financiers and industrialists in America, including Kenneth D. Lewis, the chief executive of Bank of America; Vikram S. Pandit, the head of Citigroup, and Fritz Henderson, the chief executive of General Motors.

The compensation of executives at some companies receiving aid provoked a firestorm of political outrage earlier this year. In revising a previous proposal to set pay limits, the administration has decided to take an approach that will leave the success or failure of the effort to curtail high compensation at the assisted companies in the hands of Mr. Feinberg. (Mr. Feinberg himself will not receive any government compensation.) >>> By Stephen Labaton | Wednesday, June 10, 2009

Gay Marketing - Significant Others - Out Now Consulting

New England Economy Could See Gay-marriage Boost
Gay marriage supporter Josh Drew shows off his wedding ring outside the Massachusetts State House in Boston November 9, 2006. Photo courtesy of Reuters
REUTERS: BOSTON - The expansion of legal gay marriage across New England could deliver an economic windfall by attracting a youthful "creative class" of workers to a region with an aging population.

In the past year, Connecticut, Vermont, New Hampshire and Maine have joined Massachusetts, which in 2004 became the first U.S. state to allow same-sex weddings, in blessing gay and lesbian weddings.

That makes the region the first in the United States where same-sex couples can move from one state to another while retaining marriage benefits.

New arrivals include John Visser and Nick Keffer, who recently moved to Hartford, Connecticut, from Raleigh, North Carolina. They plan to wed later this month.

"The sole, only reason why we moved was because it was now legal for us to get married here," said Visser, 42. "No other reason whatsoever other than marriage equality. We were perfectly happy in North Carolina."

New England has long burnished an image of tolerance. Early European settlers in the 17th-century escaped religious persecution, although they imposed their own stern doctrines and sometimes expelled dissenters. Later, the region led the right for the abolition of black slavery.

Five out of the region's six states now endorse gay weddings after New Hampshire legalized same-sex marriage on Wednesday, leaving Rhode Island as the sole holdout.

The spread of gay marriage could serve as a recruiting tool for universities, health care companies and financial services firms that dominate the region's economy, experts said. >>> By Scott Malone | Thursday, June 04, 2009

Gorbatschow: Westen braucht eine Perestroika
TAGES ANZEIGER: Der ehemalige sowjetische Staatschef Michail Gorbatschow hat die USA und Europa zu Reformen aufgerufen. Das Wirtschaftsmodell des Westens habe sich als unhaltbar erwiesen.

In den letzten Jahren sei deutlich geworden, «dass das neue westliche Modell eine Illusion war, das vor allem den Reichen genützt hat», schrieb Michail Gorbatschow in einem am Sonntag veröffentlichten Gastkommentar für die «Washington Post». Das Modell habe «auf einer Jagd nach Super-Profiten und übersteigertem Konsum für einige wenige, auf uneingeschränkte Ausbeutung der Ressourcen und auf sozialer und umweltpolitischer Verantwortungslosigkeit» basiert, kritisierte er. >>> vin/sda | Sonntag, 07. Juni 2009

THE WASHINGTON POST: We Had Our Perestroika. It's High Time for Yours.

Years ago, as the Cold War was coming to an end, I said to my fellow leaders around the globe: The world is on the cusp of great events, and in the face of new challenges all of us will have to change, you as well as we. For the most part, the reaction was polite but skeptical silence.

In recent years, however, during speaking tours in the United States before university audiences and business groups, I have often told listeners that I feel Americans need their own change -- a perestroika, not like the one in my country, but an American perestroika -- and the reaction has been markedly different. Halls filled with thousands of people have responded with applause.

Over time, my remark has prompted all kinds of comments. Some have reacted with understanding. Others have objected, sometimes sarcastically, suggesting that I want the United States to experience upheaval, just like the former Soviet Union. In my country, particularly caustic reactions have come from the opponents of perestroika, people with short memories and a deficit of conscience. And although most of my critics surely understand that I am not equating the United States with the Soviet Union in its final years, I would like to explain my position.

Our perestroika signaled the need for change in the Soviet Union, but it was not meant to suggest a capitulation to the U.S. model. Today, the need for a more far-reaching perestroika -- one for America and the world -- has become clearer than ever.

It is true that the need for change in the Soviet Union in the mid-1980s was urgent. The country was stifled by a lack of freedom, and the people -- particularly the educated class -- wanted to break the stranglehold of a system that had been built under Stalin. Millions of people were saying: "We can no longer live like this."

We started with glasnost -- giving people a chance to speak out about their worries without fear. I never agreed with my great countryman Alexander Solzhenitsyn when he said that "Gorbachev's glasnost ruined everything." Without glasnost, no changes would have occurred, and Solzhenitsyn would have ended his days in Vermont rather than in Russia.

At first, we labored under the illusion that revamping the existing system -- changes within the "socialist model" -- would suffice. But the pushback from the Communist Party and the government bureaucracy was too strong. Toward the end of 1986, it became clear to me and my supporters that nothing less than the replacement of the system's building blocks was needed.

We opted for free elections, political pluralism, freedom of religion and an economy with competition and private property. We sought to effect these changes in an evolutionary way and without bloodshed. We made mistakes. Important decisions were made too late, and we were unable to complete our perestroika.

Two conspiracies hijacked the changes -- the attempted coup in August 1991, organized by the hard-line opponents of our reforms, which ended up weakening my position as president, and the subsequent agreement among the leaders of Russia, Ukraine and Belarus to dissolve the Union. Russia's leaders then rejected the evolutionary path, plunging the country into chaos.

Nevertheless, when I am asked whether perestroika succeeded or was defeated, I reply: Perestroika won, because it brought the country to a point from which there could be no return to the past.

In the West, the breakup of the Soviet Union was viewed as a total victory that proved that the West did not need to change. Western leaders were convinced that they were at the helm of the right system and of a well-functioning, almost perfect economic model. Scholars opined that history had ended. The "Washington Consensus," the dogma of free markets, deregulation and balanced budgets at any cost, was force-fed to the rest of the world.

But then came the economic crisis of 2008 and 2009, and it became clear that the new Western model was an illusion that benefited chiefly the very rich. Statistics show that the poor and the middle class saw little or no benefit from the economic growth of the past decades. >>> Mikhail Gorbatchev | Sunday, June 07, 2009

Mikhail Gorbachev, the last general secretary of the Communist Party of the Soviet Union, heads the International Foundation for Socio-Economic and Political Studies, a Moscow-based think tank.

Symbiotic US-Saudi Partnership Continues
SAUDI GAZETTE: JEDDAH - US exports to the Kingdom are rising in value, but represent a falling percentage of total Saudi imports, the Saudi British Bank said in its latest report on US-Saudi Trade Relations released on Thursday.

It said, moreover, that a huge expansion in Saudi Arabia’s oil production capacity is set to help meet US and global needs.

The bank noted that the relationship between the US and Saudi Arabia is based on a symbiotic relationship involving an understanding, but not always agreement, about politics, economics and security issues.

The sum of these three elements makes the relationship “special”, but also symbiotic. It is a relationship in which the partners cannot be easily disentangled. It is also a relationship that is often misunderstood and subject to misinformation. For the US, Saudi Arabia is a politico-strategic partner in the Middle East.

Saudi Arabia is a voice of moderation and stability - and undoubtedly the single most important country in the world of energy. It is the driving force that tries to bring moderation in prices and to supply global markets with sufficient oil.

It further said that despite the political proclamations of Washington (made by every US administration since President Nixon), the US will become more dependent on foreign oil, particularly Middle Eastern oil.

The report said US-Saudi trade relations have remained solid, albeit with imports from the US progressively declining over the years as a percentage of total imports. But Saudi Arabia remains one of the US’s top 15 trading partners. >>> Saudi Gazette staff | Friday, June 05, 2009

Can Oligarchs Survive Russia's Slump?
Mikhail Prokhorov has done better than others - but still lost billions. Photo courtesy of the BBC
BBC: Getting to talk to Russian billionaires is never easy. They are notoriously camera-shy, and with good reason.

In Russia, the "oligarchs", as they are generally known, are not very popular. Most ordinary Russians believe that their vast fortunes were stolen during the corrupt privatisations of the 1990s.

So news that the oligarchs are in trouble has been met by many here with a degree of Schadenfreude.

It is - if you like - the story of the incredible shrinking billionaires.

According to Forbes Magazine, a year ago Moscow was home to 74 of them - more than any other city in the world.

Now there are only 27 left. Even those that survive have seen their fortunes slashed.

So imagine my surprise when not one, but two of them, invited me round for a chat.

And they were not just any old second-rate billionaires - one was Russia's richest man, Mikhail Prokhorov.

To put it mildly, Mr Prokhorov is an impressive figure. He stands 2.03m (6ft 8in) in his socks. He is just 43 years old and, even after losing half his fortune, he is still worth close to $10bn (£6.1bn).

Sadly, Mr Prokhorov did not invite me to his country estate, or for a quick spin in his $60m jet.

Instead, it was 20 minutes over coffee in the business-class lounge of a grimy provincial airport. >>> By Rupert Wingfield-Hayes, BBC News, Moscow | Tuesday, June 02, 2009

The Trillion Dollar Question: China or America?
THE TELEGRAPH: Who is going to come out of the economic crisis stronger and with the whip hand - China or America, asks Niall Ferguson.

A delegation led by US Treasury Secretary Timothy Geithner, second from right, meets a Chinese led by vice-premier Wang Qishan in Beijing. Photo courtesy of The Telegraph
Two years ago, economist Moritz Schularick and I coined the word "Chimerica" to describe what we saw as the key relationship in the then-booming global economy: China plus America. Cheap Chinese labour was making US corporations highly profitable. Spendthrift American consumers, in turn, were keeping Chinese corporations busy with export orders. And the Chinese monetary authorities were converting export surpluses into dollar denominated reserves with the aim of preventing their own currency from appreciating. The unintended consequence was a multi-billion dollar credit line to the United States, financing America's deficit at rock-bottom rates.

It was those low long-term rates – combined with monetary policy errors by the Fed, excessive bank leverage and reckless financial engineering – that inflated the American property bubble, the bursting of which triggered this crisis.

To simplify the story, think of an unhappy marriage in which one partner does all the saving, while the other does all the spending. (We all know at least one couple like that.) But then the partner with the retail therapy habit maxes out on his/her credit cards. At the same time, the parsimonious partner finds her/his job under threat. What previously was a stable relationship is suddenly on the rocks.

In February, the People's Daily acknowledged the "global importance and influence" of Chimerica, but warned of an impending "period of chillness". Could this be one of those great turning points in history, when the balance of power tilts decisively away from an established power and towards a rising challenger? It is possible. Financial crises often accelerate the gradual shifting of the geopolitical tectonic plates; they are to history what earthquakes are to geology. >>> By Niall Ferguson | Monday, June 01, 2009

Niall Ferguson's 'The Ascent of Money: A Financial History of the World' is published in paperback by Penguin this week

Islamic Finance Info Launches Islamic Finance Web Portal
AME Info: Islamic Finance Info Inc., the online company dedicated to offering the Muslim investors financial and investment information service in compliance with Islamic principles, announces the launch of its Islamic Finance web portal at www.islamicfinanceinfo.com.

The ultimate goal of establishing the web portal is to create a platform that is totally dedicated to Islamic Finance so that the relevant information could be disseminated across the globe.

Islamic Finance have been proven to be resillient against the current global financial crisis because it follows the tenets of Shariah that have prohibited its association to elements such as riba, speculation and uncertainty. Now, many people, Muslims and non Muslims alike are curious to find out more about Islamic Finance. IFI's objective is to provide the answers to all things related to Islamic Finance.

The Islamic Finance portal will provide educational information on the basic principles of Islamic finance, the various types of Islamic finance products and the other key principles in Islamic Finance.Membership is currently free and will entitle the users to access the various databases that are currently set up. Amongst those that are available would be the list of Islamic banks. Takaful companies, Shariah scholars and Islamic funds.

Islamic Finance Info Inc. was founded by two investors with extensive experience in Islamic Finance and Information Technology. The company is currently in the process of setting up its various offices. It will eventually have a key presence in Dubai and Singapore respectively. [Source: AME Info] Monday, June 01, 2009

Britain's Millionaire List Shrinks in Face of Recession
THE GUARDIAN: UK has 242,000 millionaires, down from a peak of 489,000

Britain's millionaires' row has nearly halved in size due to the slump in property and share prices.

The number of millionaires in the UK has fallen from 489,000 at the peak of the economic boom in 2007 to 242,000, reducing the elite club to 2003 levels. Soaring property prices stoked a boom in the British rich list but the collapse in the housing market has suddenly reduced the net worth of thousands of former property millionaires.

The Centre for Economics and Business Research (CEBR) said a very large number of people had entered the lower echelons of the rich list due to the runaway property market and had dropped straight out again once prices faltered, falling 17.7% in the last year.

"Having just crept over the threshold, most of these people have crept back under it again - many, perhaps, without ever knowing that they had become millionaires for a temporary period," said Douglas McWilliams, the chief executive of CEBR.

Owners of buoyant share portfolios have also seen their asset base deteriorate, with a 70% drop in City bonuses also playing a part in the decline. >>> Dan Milmo | Wednesday, May 27, 2009