Mr [Mario] Monti’s candidature was announced after President Giorgio Napolitano spent the day in 17 meetings with senior politicians.
Speaking to reporters shortly afterwards, Mr Monti said Italy should be an “element of strength and not weakness” within the EU.
“We will aim at solving the financial situation, resume the path of growth. [We want to build] a future of dignity and hope for our children.”
A euro-zone central banker confesses that he has lately been thinking about historical catastrophes such as the first world war and wondering how the world blundered into them. “From the middle of a crisis”, he says ominously, “you can see how easy it is to make mistakes.”
Economic and Monetary Union (EMU) was supposed to banish the competitive devaluations that threatened the single market in the early 1990s. It promised to bind a unified Germany into the EU and pave the way for some sort of political union in Europe. Today that dream has not vanished altogether, but the single market is under threat once more. Europe’s nations are at loggerheads, Germany is in a state of outrage, and the link between the euro and the nation state is more fraught than ever. EMU truly is, writes David Marsh, author of a history of the euro, “Europe’s Melancholy Union”.
“The 2008 crisis shows that the dominant economies were not as dominant as they thought,” says Dominique Strauss-Kahn, the French former head of the IMF. “If Europe fails, it will suffer from low growth, economic domination and cultural domination.” Can Europe turn back from the abyss? Only if the core countries will support the rest as they submit themselves to radical political, social and economic reform. Nobody should be under any illusions about how difficult that will be.
“We’ve entered a make-or-break scenario,” said Thomas Klau, a German who heads the Paris office of the European Council on Foreign Relations. “The present situation with Italy now is sustainable for days, perhaps weeks, but not months. This new chapter either writes the endgame of the euro zone, or it precedes a much bigger leap into political and economic integration than all those made so far.”
With each bout of uncertainty, speculative attacks come closer to the core of the European Union. Greece teeters, Italy wobbles and France begins to tremble. The precariousness of the situation was on full view Thursday when a leading ratings agency, Standard & Poor’s, mistakenly suggested on its Web site that it had downgraded France’s prized AAA rating, prompting a sell-off in French government bonds….
And it may get worse, with a recession looming. Unless, of course, the crisis has concentrated minds sufficiently, especially in Berlin. One of the first and most effective ways to combat the crisis and the potential downturn, experts say, would be to enable the European Central Bank, or E.C.B., to act as a lender of last resort, or to at least let it print some more money, to try a little inflation as a recipe for growth and debt reduction.
The percentage of American adults who get their health insurance from an employer continues to decline, falling to 44.5% in the third quarter of this year. This percentage has been steadily declining since Gallup and Healthways started tracking Americans’ health insurance sources in 2008.
Since work brings man to experience his role as a participant in God’s creative plan, a lack of work — or precarious employment situations — can lead to identity crises, says Benedict XVI.
[The plenty with which we are surrounded] today is tinged with bewilderment. Drug abuse and violence are rife. Mental illness seems to have become more common, not simply better recognised, over the last generation or so. Rates of self-harm among teenage girls are also high and seem to be increasing. Personal debt has hit a record high.
So what has gone wrong? What has caused the loss of paradise? David Cameron said two years ago: “Research by Richard Wilkinson and Kate Pickett, in The Spirit Level, has shown that among the richest countries, it’s the more unequal ones that do worse according to almost every quality of life indicator.”
The Prime Minister was right to draw attention to this book. Its essential message, backed up by sound social science research, is that inequality damages community life and the relationships that hold us together. It shows that many social problems are more common in societies with larger income differences. Sadly, Britain is among the more unequal of the rich countries.
Read it all and it may also be found there.
Business Secretary Vince Cable has said he sympathises with the feelings of protesters outside St Paul’s Cathedral.
He told BBC’s Politics Show that the anti-capitalist demo reflected feelings about those who had prospered in the economic crisis, as many more suffered.
Mr Cable added that legislation could be introduced to curb executive pay.
For the second time in two years, European debt troubles threaten to slow the momentum of the fragile recovery in the United States.
Although American financial institutions have taken steps to protect themselves from Europe’s long-simmering problems, the likely slowdown in Europe could damage consumer and business confidence in America and strengthen the dollar, making United States exports less competitive.
“Financial contagion can lead to the very rapid global spread of recession,” said Chris Varvares, senior managing director for Macroeconomic Advisers, a forecasting company. “If trouble intensifies and spills over to equities and other U.S. risk assets, we could see a soft patch.”
There are Christians, too, eager to be seen as Christians. They face a special challenge. They want to make the church visible, so they wear clerical collars or other religious garb, like the albs, or white robes, that lay Christians may also wear.
But they know that many, especially on the political left, are wary of Christians, suspicious that these men and women in strange garments are seeking converts. When liberal activists hear “Christian,” they often think “conservative.” Many would thrill to see an imam marching next to them but shudder at a priest.
So committed Christians have different answers to the question, “How Christian should we seem?” Marisa Egerstrom, an Episcopalian who studies religion at Harvard, recognized Occupy Wall Street as a sign of the times, “a continuation of the Arab Spring.” On Sept. 17, she brought a group of 10 Boston-area Christians, including Roman Catholics and Lutherans, to Zuccotti Park in New York.
One objection that I often hear from evangelicals is that while aid is good, it is not the government’s job. Yes, individuals and churches play a vital role in aid and development. But governments play a unique and vital role that private organizations cannot. The poverty-focused programs in the foreign-aid budget are facing cuts of between $1.2 billion and $3.2 billion from 2010 levels. In comparison, the largest American Protestant denomination, the Southern Baptist Convention, has a budget of $308 million for its missionary and aid organization.
We cannot let others suffer simply because times are tough in the U.S. All Americans must understand the urgency of the human need and the effectiveness of our government’s aid programs.
A Louisiana appeals court has opened the legal door for Episcopal churches in the state to quit the national Church and keep their properties.
On 14 September 2011 the First Circuit Court of Appeal in Baton Rouge upheld a lower court decision allowing a Presbyterian congregation to leave its presbytery and keep its property ”“ even though the Presbyterian Church’s constitutional documents claimed an interest in the property.
Relying upon the US Supreme Court’s decision in Jones v Wolfe, the appeals court in the case of Carrollton Presbyterian Church v the Presbytery of Southern Louisiana rejected the argument put forward by the presbytery that the addition of a trust clause in a denomination’s constitution was sufficient to create a valid and enforceable trust on property.
The Prime Minister said on TuesÂday that people should “not be able to erect tents all over the place”, as the Occupy protest outside St Paul’s Cathedral continued into its fourth week. There are now an estimated 2000 Occupy protests around the world, including several in the UK.
During an appearance before the House of Commons liaison comÂmitÂtee, David Cameron said that protest “is certainly a right that people have. But I have got this rather quaint view ”” you shouldn’t be able to erect tents all over the place.
“I think protesting is something you, on the whole, should do on two feet, rather than lying down ”” in some cases in a fairly comatose state.”
An investigation into commercial online filtering technology reveals the prevalence of devices from Blue Coat, an American firm, being used to censor the Web in Syria and Burma. Ron Deibert of Toronto’s Citizen Lab discusses the report’s importance.
If you live in Burma or Syria, good luck trying to access pro-democracy websites, overseas news networks, even dating websites. Thanks to devices made by Blue Coat Systems, portions of the Net are inaccessible to residents in these countries, and a recent report reveals how a number of these filtering devices have been found in the regions, despite the manufacturer claiming they never sell their products to embargoed countries.
With interest rates on its sovereign debt surging well above seven per cent, there is a rising risk that Italy may soon lose market access. Given that it is too-big-to-fail but also too-big-to-save, this could lead to a forced restructuring of its public debt of €1,900bn. That would partially address its “stock” problem of large and unsustainable debt but it would not resolve its “flow” problem, a large current account deficit, lack of external competitiveness and a worsening plunge in gross domestic product and economic activity.
To resolve the latter, Italy may, like other periphery countries, need to exit the monetary union and go back to a national currency, thus triggering an effective break-up of the eurozone.
Read it all (requires subscription).
Through heavy social spending and investments in major building projects, Spain is one country whose regional authorities have been living beyond their means and racking up large budget deficits. Those gaps were sustainable during boom times, but in the current economic climate, they threaten to push Spain toward a financial reckoning that could have consequences far beyond its borders.
Regional overspending is likely to cause the central government in Madrid to miss its target of bringing the nation’s overall deficit down to 6% of gross domestic product this year, considered crucial to maintain investor confidence. For that reduction to happen, Spain’s 17 regional governments were told to post budget shortfalls amounting to no more than 1.3% of GDP, but they almost reached that level after just the first six months of the year.
“If the regions surpass their deficit limits, then they can send Spain as a whole off course,” said Ismael Sanz, an analyst at King Juan Carlos University in Madrid.
Italy on Wednesday became the first major economy to require an international bail-out as its debts hit “totally unsustainable levels”.
The country’s escalating crisis prompted questions about whether European leaders had sufficient will or financial firepower to rescue it.
The interest rate at which the Italian government borrows on the international bond markets hit seven per cent ”“ the point at which the smaller eurozone economies of Ireland, Portugal and Greece had to be rescued.
The vote by officials in Alabama’s most populous county occurred about a month after Pennsylvania’s capital of Harrisburg sought court protection citing millions in overdue bond payments tied to a trash-to-energy incinerator. A Jefferson filing would eclipse that of California’s Orange County in 1994. The action might reignite concerns among investors over defaults in the $2.9 trillion U.S. municipal bond market.
“It’s going to create attention-grabbing headlines, and the question is how retail investors react,” Peter Hayes, a managing director at BlackRock Inc., the world’s largest asset manager and the owner of $95.6 billion of municipal bonds, said before today’s decision.
Update: I found the following map helpful in terms of locating where Jefferson County is.
The world’s leading oil exporter Saudi Arabia faces rising tensions with regional rival Iran and turmoil in two neighbouring countries hit by the wave of Arab unrest this spring as it tackles changes at the top of its ruling family.
The death of Crown Prince Sultan in October led to conservative Interior Minister Prince Nayef’s promotion to King Abdullah’s heir only a week after the octogenarian monarch had his third back operation within a year.
The stability of Saudi Arabia is of global importance since the kingdom sits on more than a fifth of the world’s oil reserves, is a significant owner of dollar assets and acts as Middle East lynchpin of U.S. security policy.
The National Association of Evangelicals on Tuesday (Nov. 8) called for greater precautions with nuclear weapons and a renewed effort toward disarmament.
“The rules have changed in the past 25 years,” NAE President Leith Anderson said. “Nuclear weapons don’t serve as a deterrent to the dangers of our post-Cold War era, which include rogue nations and terrorist groups.”
Italy’s financial crisis deepened on Wednesday despite a pledge by Prime Minister Silvio Berlusconi to resign once Parliament passes austerity measures demanded by the European Union.
The move failed to convince investors, propelling Italy’s borrowing costs through a key financial and psychological barrier of 7 percent, close to levels that have required other euro zone countries to seek bailouts.
Mr. Berlusconi, cornered by world markets and humiliated by a parliamentary setback, appeared to have become the most prominent victim of the broader European debt crisis. But his decision did not remove wide uncertainty about Italy’s ability to tackle the crisis, and some analysts said the prospect of a protracted period of political wrangling could exert further pressure for a quicker exit from the impasse.
Obama, at any rate, felt that they would have little value. Instead, he confronted the Germans in Cannes with a suggestion so radical that it alarmed both Merkel and Schäuble. To save the common currency, Obama proposed that the Europeans follow the example of the American Federal Reserve, which buys up almost unlimited amounts of US treasury bonds when necessary.
The Germans pointed out feebly that the ECB operates within a completely different tradition than the Fed, and that it also pursues a different mission. But it is becoming increasingly clear to Merkel and her finance minister that, in the end, only the ECB will be able to save the euro if the crisis continues to escalate. It is the only European fiscal policy institution capable of taking action, and it also comes equipped with unlimited firepower. It can never run out of money, because it can simply print new money when needed.
This is an approach Germany’s representatives in the ECB council have strongly resisted….But how long can the Germans resist the pressure from other members?
Mr [Ken] Costa, the chairman of the St Paul’s Initiative, established by the Church to open up a debate on ethical capitalism, said the clergy’s response to the ongoing protests outside St Paul’s Cathedral must not turn into a “reheated Faith in the City”.
In his first public comments since his appointment, Mr Costa insisted that a flourishing banking sector was “essential to any successful economy” and that financial incentives are “both valid and effective”.
He also said that stiffer regulation of financial services was not necessarily the solution to the global economic crisis, saying, “you cannot regulate into existence a culture of honesty, integrity, truthfulness and responsibility”.
Like many middle-class American baby boomers, Linda Carmona-Sanchez is anxious about slipping into poverty and says whatever dreams she once had about retirement in her “golden years” have turned into nightmares.
“We don’t value people here in this country, and we value you less if you’re not healthy and strong,” Carmona-Sanchez, 55, said.
“To me it would almost be a welcome blessing to know that I would die rather than to be old and have to live in poverty,” she said.
Her anxiety is widespread….
Silvio Berlusconi, Italy’s embattled prime minister, signalled on Tuesday night that he would resign after parliament passes a new financial stability law that will implement fresh austerity measures demanded by the European Union.
Giorgio Napolitano, head of state, said Mr Berlusconi had expressed his recognition of the “urgent need” to respond quickly to the expectations of Europe through the approval of the stability law, which would be amended in light of the most recent recommendations of the European Commission.
A special U.S. committee charged with reducing the federal deficit is entering a critical week for reaching a deal but has not considered extending its Nov. 23 deadline, a panel member said Monday.
“Every member understands that time is running out,” House Democrat Chris Van Hollen, a member of the “super committee,” said in an interview with MSNBC’s “Morning Joe” program. “This is the moment to get it (a deal) done if we’re going to get it done.
“The clock’s ticking. We’ve got just a little over two weeks and that includes the time that it will take to put the final touches on any agreement that we might be able to reach,” he said.
As student-loan default rates climb and college graduates fail to land jobs, an increasing number of students are betting they can get just as far with a degree from a less-expensive school as they can with a diploma from an elite school””without having to take on debt.
More students are choosing lower-cost public colleges or commuting to schools from home to save on housing expenses. Twenty-two percent of students from families with annual household incomes above $100,000 attended public, two-year schools in the 2010-2011 academic year, up from 12% the previous year, according to a report from student-loan company Sallie Mae.
Such choices meant families across all income brackets spent 9% less””an average of $21,889 in cash, loans, scholarships and other methods””on college in 2010-11 than in the previous year, according to the report. High-income families cut their college spending by 18%, to $25,760. The report, which is released annually, was based on a survey of about 1,600 students and parents.
British bankers have admitted that they are paid too much, a report into moral standards in the City of London will reveal tomorrow.
A survey of 500 workers in City financial institutions, carried out for the Christian think-tank St Paul’s Institute, found that “a substantial number” believed they were overpaid compared with other professions ”“ particularly frontline workers including teachers and, most of all, nurses.
The results will fuel continuing bitterness towards the industry over its culpability for the financial crisis and its apparent failure to rein in huge salaries and bonuses . Last night The Sunday Times reported the publicly owned Royal Bank of Scotland is planning to pay its investment bankers about £500m in bonuses.
