CURRENT ECONOMIC AND POLITICAL NEWS EVENTS: BRINGING OUR WORLD (EAST AND WEST) CLOSER TOGETHER TO FORM A GLOBAL SOCIETY ~ LOOK FOR GLOBAL CURRENCY NEWS AND UPDATES ON GLOBAL AND REGIONAL CURRENCIES: ASIAN, MIDDLE EAST, LATIN AMERICA, EMERGING MARKETS, ALONG WITH THE EURO AND THE U.S. DOLLAR ...
Snip ~ On the other hand, Saleh said that we are always working to review the controls sale of foreign currency out of the window official (central bank) and Iraq enjoy considerable freedom in the transfer of funds as provided for in .. Article VIII Link of the Convention on the International Monetary Fund has allowed Iraq to free current account to purchase goods and services from abroad without restrictions. Tuesday 02/14/2012
Central Bank: GDP of Iraq will rise from 180 to 350 billion dollars after two years
Baghdad - Mostafa Hashemi said the deputy governor of the Central Bank that the conditions experienced by the neighboring countries do not affect the Iraqi dinar exchange rate.
Confirmed the appearance of Mohammed Saleh told (the citizen) that the strength of the Iraqi dinar is derived from a link Iraq to the global economy.
He emphasized that the events taking place in neighboring countries cannot affect the exchange rate of the currency, but in a superficial or negligible. Pointing out that the currency's strength also comes from the strength of oil exports to Iraq and how to maintain and invest in real development.
China central banker backs euro, vows more support
China's top central banker on Wednesday expressed confidence in the euro and pledged to continue buying European sovereign debt, as the Asian giant seeks to shore up support for its biggest trading partner.
Central bank governor Zhou Xiaochuan also repeated remarks by Premier Wen Jiabao that China was ready to get more involved in efforts to resolve the eurozone debt crisis, which is hurting demand for its exports.
"As Premier Wen Jiabao said yesterday at the China-EU summit, China will... continue to invest in European government bonds and will continue... to get more involved in solving the European debt crisis," Zhou said.
"We have confidence in the euro," he added, during a speech at the opening of a euro exhibition in Beijing also attended by European Union president Herman Van Rompuy and European Commission president Jose Manuel Barroso.
Wen told the European leaders on Tuesday that Beijing was considering using the International Monetary Fund and Europe's bailout funds to help address the continent's fiscal woes, without elaborating further.
Kuwait's Emir Sheikh Sabah al-Ahmad al-Sabah named a new cabinet on Tuesday with 10 new faces, including the oil and defence ministers, and no women, despite objections from the opposition.
Hani Hussein, a former chief executive officer of the national oil conglomerate Kuwait Petroleum Corp, was appointed oil minister, replacing Mohammad al-Baseeri.
Sheikh Ahmad Khaled Al-Sabah, a member of the ruling family and former chief of staff, was appointed defence minister.
Mustafa al-Shamali, the long-serving finance minister, kept his job.
The new cabinet does not include a single Islamist, the largest opposition bloc that scored an impressive victory in the February 2 general elections when they won 23 seats in the 50-member parliament.
Snip From Article Below ~ "Failure to reauthorize Ex-Im would amount to unilateral disarmament in the face of other nations' aggressive trade finance programs ... (and) put billions of dollars in U.S. exports and thousands of American jobs at risk," business groups said in a letter on Tuesday to members of Congress" February 14, 2012
U.S., China agree to negotiate export credit deal
Washington, The United States and China agreed on Tuesday to open talks on setting guidelines for export-credit financing, an area where Beijing's aggressive practices have raised U.S. concerns.
The White House said the United States and China would establish an international working group that included other major providers of government-backed loan guarantees "with the goal of concluding an agreement by 2014."
The announcement followed a meeting between President Barack Obama and China's leader-in-waiting, Vice President Xi Jinping.
The two sides agreed to make "concrete progress towards a set of international guidelines on the provision of official export financing that, taking into account varying national interests and situations, are consistent with international best practices," the White House said.
Iran's president to unveil "some nuclear achievements" on Wednesday
Iranian President Mahmoud Ahmadinejad will unveil "some nuclear achievements" on Wednesday, Iran's presidential website announced on Tuesday.
"In the presence of the president, some new and worthwhile achievements of the country's nuclear scientists in the field of atomic energy will be unveiled" on Wednesday, the announcement said.
"The disclose of these achievements will display the extraordinary capability of Iranian young scientists and their nuclear knowledge to the world," the website said.
The projects will show Iran's adherence to the slogan of " nuclear energy for all and nuclear weapons for none," according to the announcement.
Ahmadinejad said Saturday that Iran will announce new "big" nuclear achievements in days.
"In the following days, the world will witness the inauguration of several big achievements in nuclear fields," he said addressing a large crowd of people gathered at Tehran's Azadi Square on the occasion of the 33rd anniversary of the Islamic revolution.
On Sunday, local Mehr news agency quoted an informed source as saying that Fordo nuclear enrichment facility will become fully operational over the next few days.
Early in January, Iran's permanent representative to the International Atomic Energy Agency (IAEA) Ali-Asghar Soltanieh said at the IAEA headquarters in Vienna that Iran had begun uranium enrichment at an underground bunker of the Fordo nuclear facility.
Snip ~ Wen pointed out during the summit that with the global financial crisis still affecting the world in terms of politics, economics and security, it is the current trend for each nation to promote reform and widely participate in international cooperation.
China, EU underline urgency of economic, trade cooperation Beijing, Leaders of China and the European Union (EU) on Tuesday underscored the importance of beefing up economic and trade cooperation in the context of the stagnant world economy.
The call came from the 14th China-EU summit in Beijing, which was attended by Chinese Premier Wen Jiabao, European Council President Herman Van Rompuy and European Commission President Jose Manuel Barroso.
"It is currently the most urgent task for China and the EU to enhance economic and trade cooperation," Wen said at a press conference after the summit, during which he raised a five-point proposal to the EU side in this respect.
February 14, 2012 Message about the "Big Berky Black Water Filter"
Please note that if you purchased a Big Berky Black Water filtration system during 2011 and have had problems with the filter please contact the Berky Company.
If you purchased the unit from the company "Ready Made Resources" be sure to contact them about the matter.
The problem was detected in just a few units with filters manufactured between the dates of Nove 2010 to March 2011.
Below are links that deal with the subject.
At the Berky site click on the FAQ at the right and then select "refunds" from the selection for the information.
1 Israeli new sheqel = 0.2672 US dollars February 13, 2012
Concluding Statement of the 2012 Article IV Consultation Mission to Israel
1. Israel's economy remains strong. Output fell for only two quarters during the "Great Recession", then grew almost 5 percent in 2010 and 2011 led by strong exports and consumption, with investment rising more recently. At 5½ percent, unemployment is at a historic low, while inflation and inflation expectations have both fallen back from slightly above to squarely inside the 1–3 percent target range—the latter reflecting in part the timely tightening of monetary policy in the upswing. The shekel is now broadly consistent with fundamentals and international reserves are appropriate by most measures.
Maliki urges Kuwait to open new chapter in relations
Baghdad, Iraqi Prime Minister Nouri Al-Maliki on Tuesday urged the State of Kuwait to put all the bad memories behind and let bygones be bygones.
"Iraq is eyeing new relations with all Arab countries, particularly neighboring Kuwait, based on mutual respect and trust," Al-Maliki said in a meeting with Kuwait's Ambassador here Ali Al-Moamen.
Al-Maliki called on the State of Kuwait to forget about the bad memories of Saddam Hussein regime's occupation of Kuwait and to open a new chapter with Iraq.
For his part, Ambassador Al-Moamen said that His Highness the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah is eager to develop ties with Iraq at all levels.
Al-Moamen renewed HH the Amir's invitation to the Iraqi Premier to visit Kuwait.
In response to his invitation, Al-Maliki said he plans to visit Kuwait ahead of the coming Arab Summit, to be held in Iraq.
Israel On Alert: Positioning Warships for Attack on Iran. Jericho II Missiles Being Fueled. USS Lincoln Enters Persian Gulf
Aircraft carrier USS Abraham Lincoln passes through straight of Hormuz 'without incident' [link to twitter.com]
Washington, Israel has dispatched a number of naval vessels – under cover – into the Arabian Sea, and they are moving into its northern regions, just off of Iran, a U.S. intelligence source has reported in Joseph Farah’s G2 Bulletin.
The Israeli vessels have been positioned at the mouth of the Gulf of Oman, which leads to the Strait of Hormuz. Iran has threatened to shut down that gateway to the Persian Gulf if further sanctions are imposed against its sale of oil and on its central bank.
Why Is Global Shipping Slowing Down So Dramatically?
If the global economy is not heading for a recession, then why is global shipping slowing down so dramatically? Many economists believe that measures of global shipping such as the Baltic Dry Index are leading economic indicators. In other words, they change before the overall economic picture changes. For example, back in early 2008 the Baltic Dry Index began falling dramatically. There were those that warned that such a rapid decline in the Baltic Dry Index meant that a significant recession was coming, and it turned out that they were right.
After a bruising meeting in a five-star Cairo hotel, Arab foreign ministers led by Gulf states hinted to Syrian President Bashar al-Assad that unless he halts his violent crackdown, some Arab League members might arm his opponents
Snip ~ "The Finance Minister Rafie al-Issawi had discussed, on the first Sunday, with the U.S. delegation in the presence of Deputy Assistant U.S. Treasury Secretary Neil will not be economic and political situation in Iraq and the region in general, and the two sides stressed the need to support the banking system and taxation in the country through the mechanisms, procedures and laws that raise the level of banking in Iraq and to support the economic level and investment in it. " Tuesday, February 14, 2012
Finance parliamentary indicate the points of "imbalance" in the government and parliament for "failing" to build the state and its institutions
Confirmed the parliamentary Finance Committee, on Monday, as the process of preparing strategic plans and programs to support the banking system and tax in the country, indicating that these two systems need more laws and legislation, plans and mechanisms for their support.
A member of the Finance Committee parliamentary Najiba Najib in an interview with "Twilight News" that "the two systems the banking and taxation in the country still need more support through the development of plans and mechanisms conducted by the authorities of legislative and executive branches in the country," asserting that "the banking system and the current tax does not serve the Iraqi state and the economic realities.
A Must-Read On The Societal Disaster That's Happening In Greece
This paragraph is a punch in the gut:
By many indicators, Greece is devolving into something unprecedented in modern Western experience. A quarter of all Greek companies have gone out of business since 2009, and half of all small businesses in the country say they are unable to meet payroll. The suicide rate increased by 40 percent in the first half of 2011.
A barter economy has sprung up, as people try to work around a broken financial system. Nearly half the population under 25 is unemployed. Last September, organizers of a government-sponsored seminar on emigrating to Australia, an event that drew 42 people a year earlier, were overwhelmed when 12,000 people signed up.
Europe crisis tops agenda as China, EU leaders meet
Chinese and EU leaders will meet Tuesday for a major summit set to be dominated by Europe's debt crisis, as an increasingly worried Beijing considers coming to the rescue of the embattled continent.
The summit comes a day after ratings agency Moody's downgraded Italy, Spain and Portugal and warned that France, Britain and Austria were increasingly vulnerable to the crisis, which China said had reached a "critical" stage.
Beijing has made clear its growing concerns over the crisis in Europe, its biggest export market, repeatedly urging EU leaders to get a grip on the situation.
On Tuesday, Premier Wen Jiabao will hold talks with EU president Herman Van Rompuy and European Commission president Jose Manuel Barroso likely to touch on Syria, Iran and a controversial EU carbon charge on airlines.
But concerns over Europe's economy and financial sector are expected to dominate.
Last week, the Tehran Times noted that the Iranian oil bourse will start trading oil in currencies other than the dollar from March 20. This long-planned move is part of President Mahmoud Ahmadinejad’s vision of economic war with the west.
“The dispute over Iran’s nuclear programme is nothing more than a convenient excuse for the US to use threats to protect the 'reserve currency’ status of the dollar,” the newspaper, which calls itself the voice of the Islamic Revolution, said.
“Recall that Saddam [Hussein] announced Iraq would no longer accept dollars for oil purchases in November 2000 and the US-Anglo invasion occurred in March 2003,” the Times continued. “Similarly, Iran opened its oil bourse in 2008, so it is a credit to Iranian negotiating ability that the 'crisis’ has not come to a head long before now.”
Iran has the third-largest oil reserves in the world and pricing oil in currencies other than dollars is a provocative move aimed at Washington. If Iran switches to the non-dollar terms for its oil payments, there could be a new oil price that would be denominated in euro, yen or even the yuan or rupee.
India is already in talks with Iran over how it can pay for its oil in rupees.
Even more surprisingly, reports have suggested that India is even considering paying for its oil in gold bullion. However, it is more likely that the country will pay in rupees, a currency that is not freely convertible
Last week, Indian state-owned group Hindustan Petroleum said that Indian businesses could not pay for Iranian crude imports in rupees unless the federal finance ministry exempted such payments from crippling withholding tax. This issue remains unresolved.
India and Iran have agreed – but not yet started – to settle 45pc of payments for Iranian oil in rupees. Iran will then use the currency to buy imports from India.
New Delhi currently spends about $12bn (£7.6bn) on Iranian oil each year, importing 12pc of the country’s needs from the country.
India pays for its oil in dollars, routed through a bank in Turkey after a previous mechanism was shut down in 2010. The Indian government has been resisting calls to stop importing oil from the pariah state.
“There have been problems with regard to Iran’s nuclear programme,” Manmohan Singh, India’s prime minister, said on Friday. “We sincerely believe that this issue can be and should be resolved by giving maximum scope to diplomacy.”
All of this means that the EU ban on Iranian oil imports, which comes into force on July 1, could hit Europe harder than it does Iran.
The country currently supplies 500,000 barrels of oil per day to the EU and there is a potential oil price spike in the offing should Iran pre-emptively stop the flow of oil to Europe, which it has threatened to do.
This could be disastrous to businesses that are already finding the economic climate tough.
“While Iran may be able to find markets for much of its oil output in Asia, the alternative sources of supply to Europe are still unclear,” Caroline Bain, a commodities analyst at the Economist Intelligence Unit, said.
“Until the supply outlook stabilises, the oil price is expected to continue to reflect this uncertainty rather than the likelihood of lower growth in global oil consumption in 2012.”
The worries are already sending ripples of concern around the world.
“While we have been listing the Iranian situation as a source of upside risk for a decade, there are some new factors that can make for a far more dangerous outcome, as the current drift of policy on both sides is creating the risk of a significant escalation,” Sudakshina Unnikrishnan, an analyst at Barclays Capital, said.
“Iran may close the Strait of Hormuz, causing an anticipated 50pc rise in crude oil prices, resulting in widespread economic havoc,” the Tehran Times columnist noted.
So the EU ban could be counter productive, as it keeps the oil price high. However, as long as President Ahmadinejad’s economic war doesn’t escalate into an actual war, we may manage to avoid a crippling oil spike. source
The Senate Budget Committee with hear testimony on the President's FY 2013 Budget proposal. Acting OMB Director Jeffrey Zients will be the sole witness.
The hearing will be webcast live on this page. Here
Central confirms the high sales of foreign currency
The central bank said it did not reduce the sales of hard currency, but the imposition of measures to protect the country's economy from deteriorating.
The deputy governor of Bank of the appearance of Mohammed, according to (Rn), bank sales fell after the imposition of new measures for transactions of $ 200 million to less than $4 million last Thursday, "noting that" sales on the rise and reached about 68 million dollars."
Saleh added: "The analysis of the bank to refrain from buying the difficult process due to two reasons: first is the existence of a users tried to thwart the new bank procedures and controls, and the other reason is the existence of a culture of fear among Iraqis."
He said "a lot of Iraqi traders have many transactions and have fear," noting that "the Bank discovered that some traders do not have a bank account," and expressed surprise at "the existence of traders do not have a bank account."
Kuwaiti Ambassador in Baghdad: We support the withdrawal of Iraq from Chapter VII
He expressed the Kuwaiti Ambassador in Iraq to the insured the hope the exit of Iraq from Chapter VII of the United Nations, but with taking the benefits to be implemented, stressing his country's desire to resolve the outstanding problems with Baghdad.
The insurer said upon his arrival to Baghdad to carry out his functions after nearly seven months of his departure that "came back for administrative reasons, noting that" the return is not tied to the relations between the two countries."
"The decision to participate in the summit of Baghdad taken by the Kuwaiti government for a long time and had informed Baghdad this, noting that" the Emir of Kuwait in favor of convening the Arab summit in Baghdad, and will seek to make it a success. "
House of Representatives held a hearing on Tuesday to discuss the financial budget for the current year.
A source in the information department of the Council of Representatives, told all of Iraq the day that "the agenda of the House of Representatives during its meeting tomorrow will discuss the draft budget law and financial as well as the second reading of the bill held treaties made by the Committee on Foreign Relations."
He was scheduled to hold its House of Representatives last Monday but the lack of a quorum to make the presidency of the House of Representatives postponed to Tuesday the fourteenth of February.
Finance parliamentary consensus on a calculation of the service contract employees
Revealed the Finance Committee in the House on Monday expressed its agreement to a proposal to calculate the service contract employees from 2003 to 2011, not to exceed four years, calculation, and predicted that the federal budget is passed next week.
A member of the Committee Haitham al-Jubouri told the Kurdish news agency that "the parliamentary Finance Committee discussed the terms of the financial budget in their regular meeting yesterday, approved the proposal to calculate the service contract employees from 2003 until 2011, that does not exceed four years."
Najafi hold a meeting tomorrow with the heads of parliamentary blocs
The Chairman of the House of Representatives Osama Najafi on Tuesday hold a meeting with heads of parliamentary blocs.
A statement issued by the Information Office of the Presidency of the Council of Representatives today that "Najafi will be held tomorrow, meeting with heads of parliamentary blocs in the nine o'clock in the morning and in the Constitutional Hall, located in the building of the House of Representatives."
It was scheduled to hold three presidencies meeting to discuss the preparatory committee meetings but it was postponed for busy ministers to convene a meeting of the Council in Basra.
And leaders of political blocs held a meeting yesterday in the House of Representatives to discuss the papers presented to the National Conference.
Meeting tomorrow announce and place national conference
Iyad al-Tamimi of Baghdad/term
After a day on the Iraqi coalition revealed that paper for discussion at the Conference seeks to be held, the State of law coalition led by Prime Minister Nouri al-Maliki, the Iraqi demands as conditions not lhalhalh paper, issues include issues of Tareq al-Hashemi, Saleh Al-mutlaq attempt to abort the endeavours undertaken by the various clusters and personalities for the Conference.
MP Abbas Al-Bayati said the Coalition State law reporter in Parliament "that Tareq al-Hashemi and Saleh Al-mutlaq should be resolved outside the framework of the Conference".
The paper said Al-Bayati is the conditions not outstanding conditions and lhalhalh proposals can be dealt with in this way.
As one of the demands of the Iraqi presence of personalities from frontline noted Al-Bayati "State of law Coalition generally seeks to broad general conference involving all components of the political process and that contributed to building political process since its inception and that could bring the insights and positive attitudes and reject the limit between political elites."
Monday, February 13, 2012 Moody's adjusts ratings of 9 European sovereigns Moody's has today adjusted the sovereign debt ratings of selected EU countries in order to reflect their susceptibility to the growing financial and macroeconomic risks emanating from the euro area crisis and how these risks exacerbate the affected countries' own specific challenges.
Moody's actions can be summarised as follows:
- Austria: outlook on Aaa rating changed to negative - France: outlook on Aaa rating changed to negative - Italy: downgraded to A3 from A2, negative outlook - Malta: downgraded to A3 from A2, negative outlook - Portugal: downgraded to Ba3 from Ba2, negative outlook - Slovakia: downgraded to A2 from A1, negative outlook - Slovenia: downgraded to A2 from A1, negative outlook - Spain: downgraded to A3 from A1, negative outlook - United Kingdom: outlook on Aaa rating changed to negative
Please see the individual country specific statements below for more detailed information relating to the rating rationale and the sensitivity analysis for each affected sovereign issuer.
The implications of these actions for directly and indirectly related ratings will be reported through separate press releases. READ FULL ARTICLEHERE
Obama budget: National debt will be $1 trillion higher in a decade than previously forecast
President Obama on Monday unveiled a $3.8 trillion spending plan that seeks to pump billions of dollars into the economy while raising taxes on the rich to tame a soaring national debt now projected to grow significantly faster than previously forecast.
The president’s outlook for debt reduction has deteriorated markedly since September, when Obama told Congress that his proposals would hold annual deficits well under $600 billion after next year and permit the debt held by outside investors to rise to $17.7 trillion by 2021, or 73 percent of the overall economy.
The new 10-year blueprint shows annual deficits exceeding $600 billion every year except 2018. And the portion of the debt held by outside investors would grow to $18.7 trillion by 2021, or 76.5 percent of the economy — a full $1 trillion higher.
Jaafar al-Moussawi's tomorrow I will reveal the details are very important for the bombing of the House of Representatives
MP for the Liberal bloc Jaafar al-Moussawi he will hold a press conference tomorrow will reveal important details of which are very important concerning the bombing of the House of Representatives. "
He said in a statement to all of Iraq [where] the day that "has the important details for the bombing of the House of Representatives and its relationship to the bombing, which occurred the same day in front of the Mansour district of Baghdad International Fair."
Three days before Kuwait's newly-elected parliament convenes for the first time, the formation of the new cabinet is facing challenges after three political blocs have insisted on not joining the government.
Mere days after sobering official ceremonies marked the end of the U.S. mission in Iraq, America’s most dubious partner – Prime Minister Nouri al Maliki – charged his Vice President Tareq al-Hashemi with aiding and abetting terrorism and sought to remove his Deputy Prime Minister, Saleh al-Mutlaq from office.
OTTAWA — Canada's trade minister is traveling to Malaysia, Singapore and Brunei this week to press for Canada's inclusion in the Trans-Pacific Partnership future free trade zone, his office said Monday.
In one-on-one talks with his counterparts on February 12-15, International Trade Minister Ed Fast would "continue to indicate Canada's interest in joining the negotiations for the Trans-Pacific Partnership (TPP)," said a statement.
Canadian officials are also meeting with US officials in Washington.
Nine of the Asia-Pacific Economic Cooperation (APEC)'s 21 member economies are negotiating the new pact that could create the largest free trade zone in the world, far bigger by percentage of world GDP than the European Union, but less integrated.
The pressures are mounting on the dark Ones who in recent weeks have lost so much power. They see their financial ploys failing and circumstances turning against them. The cabal have long been identified, and they are now known for what they are in their attempts to bring the world under one government. You shall soon see them taken out of circulation, and kept under supervision where they can no longer interfere or impede the changes that are already underway. There are thousands upon thousands of people who are working for the Light, and their collective energies are a powerful force for bringing out the truth and manifesting their vision of peace. The awakening continues and more souls are looking beyond their everyday happenings for the answers. They are beginning to see how their lives have been rigidly controlled, and seek the return of their rights and freedom from the restrictions placed upon them.
Controlled Implosion Of Federal Reserve Board And ECB Continuing As Planned
The controlled implosion of the Federal Reserve Board and the European Central Bank is continuing and must be completed before a new financial system can go online, according to Pentagon and other sources. In addition, action is soon expected against criminals like Israel’s Benjamin Netanyahu. Netanyahu murdered his psychiatrist Moshe Yatom after Yatom began revealing Netanyahu’s insane plans to work with Mossad agent and Iranian President Mahmoud Ahmajinedad to start World War 3
I write this week from Brussels, where European Union officials expressed support for the new assertive GCC role in addressing regional crises. They connected this enhanced role with the initiative to move the Gulf Cooperation Council (GCC) into a more integrated union, an initiative about which Europeans have been quite enthusiastic from the day it was announced during the recent GCC Summit in Riyadh on Dec. 19. Europeans were, in particular, full of praise for the GCC role in dealing with the crises in Libya, Yemen and Syria.
Maliki from Basra: we will respond to requests for the province and move to other provinces
Prime Minister Nuri al-Maliki on Monday that the Iraqi government will respond to requests for the province of Basra, in order to be able to resolve their problems varied, stressing that the Council of Ministers will decide the allocation of special sessions to other Iraqi provinces, and that the government will give all you can from the support to enable governments local performance of the work.
Washington, The Chinese like high-level meetings. They're less enamored of news conferences. So when the man slated to be China's next president visits Washington this week, there will be lots of the former and none of the latter.
In planning the visit, the White House has prepared a list of issues to discuss with Chinese Vice President Xi Jinping. But American officials have been just as aware of cultural sensitivities and the importance of protocol to Chinese officials and have worked to ensure that Mr. Xi's weeklong U.S. trip is seen as a success in China.
Arabs are increasingly relying on the US dollar to escape some of the economic repercussions of the Arab Spring. According to a study by New York's International Peace Institute, Egyptians and others are choosing to use dollars rather than their own currencies. Iraq's central bank says that its dollars are sustaining Syria's black market in currency, and in Libya, people line up at banks every morning to purchase dollars.
A year after leaders were toppled throughout North Africa, the transitions in governments has not managed to ease economic hardships. Two-thirds of Egyptians see the economy as the country's primary challenge, and since the West's promised aid has not yet materialized, saving in foreign currencies has increased and government borrowing costs have skyrocketed.
U.S. Eximbank not "corporate welfare" - GE's Immelt
Washington, General Electric Chief Executive Jeffrey Immelt on Monday defended the U.S. Export-Import Bank against charges the export-facilitating lender is "corporate welfare" and should be shut down.
"It's not really corporate welfare to put us on the same playing field that our global competitors are on," Immelt said during a panel discussion on the future of American manufacturing with Boeing Chairman Jim McNerney and Dow Chemical Chairman Andrew Liveris.
The Export-Import Bank is facing a tough reauthorization fight in Congress. Immelt, who also heads an outside economic advisory council for President Barack Obama, said the United States needed the nearly 80-year-old bank to compete against the European Union and China in global markets for aircraft and other products.
"If you're trying to sell a Boeing 737 MAX with GE engines in Africa, you've got (to compete against) a fully subsidized European superstructure and Chinese bank financing ... I think things like Exim are ways that we can level the playing field," Immelt said.
The conservative Republican group, Club for Growth, which is influential with members of the Tea Party movement, has called on Congress to kill Eximbank, which provides direct loans, credit guarantees and other financial instruments to support U.S. exports.
"The Export-Import Bank is a prime example of corporate welfare that should have been eliminated years ago," Club for Growth President Chris Chocola said on January 31. "By picking winners and losers, politicians and bureaucrats are distorting trade flows. It's time to end the Eximbank for good."
The bank has played an increasing role in supporting U.S. exports since Obama took office.
That's largely due to the lingering effects of the global financial crisis, which dried up other sources of export financing. But Obama's goal of doubling exports in five years has also increased the bank's activity.
After two back-to-back record years, Eximbank's total credit exposure is now more than $90 billion, close to the $100 billion limit set by Congress.
Some lawmakers want to increase the exposure cap to around $135 billion as part of the bank's proposed reauthorization.
In a letter last week to congressional leaders, the National Association of Manufacturers said it was vital that Eximbank be reauthorized for four more years before its current short-term extension expires on May 31.
"The Eximbank is the only tool American manufacturers have to counter the huge sums of export financing - many hundreds of billions of dollars - that other governments provide their exporters," NAM Vice President Frank Vargo said. "If American manufacturers lose access to the Eximbank, our ability to compete globally will be severely curtailed."
Tuesday 02/14/2012
