Obama to receive Kuwait Amir at White House Monday
Politics 7/31/2009 10:46:00 PM
WASHINGTON, July 31 (KUNA) -- US President Barack Obama will receive here on Monday H.H. the Amir of Kuwait Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah during which the two leaders will discuss the bilateral and regional issues, it was announced here Friday.Spokesman of the White House Robert Gibbs said that Obama will welcome H.H. Sheikh Sabah to the White House.
Gibbs indicated that Obama "looks forward" to consulting with H.H. the Amir "on deepening our partnership on bilateral and regional issues such as the pursuit of a comprehensive peace in the Middle East, including moving forward with the Arab Peace Initiative." noted that Obama will be meeting H.H. the Amir in the Oval Office.According to Gibbs, Obama and H.H. the Amir "will then have lunch together, joined by the vice president." "
The United States and Kuwait enjoy strong relations and cooperation," he affirmed.Kuwaits Ambassador to Washington, Sheikh Salem Al-Abdullah Al-Jaber Al-Sabah had affirmed to KUNA, that the regional issues that will be discussed during the summit meeting will focus on four "important" files which are the security in the Gulf region, Iraq, Iran and the Middle Eastern dossier.He added that the issue of the Kuwaiti detainees in Guantanamo "is always in the mind of His Highness the Amir, therefore it is considered a top topic which His Highness Sheikh Sabah will be discussing with President Obama."
(end) si.bs KUNA 312246 Jul 09NNNN
Friday, July 31, 2009
Wednesday, July 29, 2009
September 2009 ~ Sunday G-20 Forum: Lift the debt burden on poor countries ...
Sunday, September 20, 2009
Sunday G-20 Forum: Lift the debt burden on poor countries
Without debt relief, the developing world has little hope of economic progress, say the REV. JOHN WELCH and RUTH MESSINGER
This week, when leaders of the most powerful and wealthy nations in the world gather here in Pittsburgh for the G-20 summit, they can strike a powerful blow for social justice and humanitarianism. By taking concrete steps to fight global poverty, especially through cancellation of the debt burdening poor countries, they can ease human suffering and bring hope to some of the most desperate places on Earth.
The global financial crisis, which has devastated families in Western Pennsylvania and nationwide, is having an even more dire impact in the developing world. Throughout sub-Saharan Africa and the rest of the global South, children who should be in school are instead hospitalized with diseases that could have been prevented with simple vaccinations. But the money many of these countries should be spending on basic education and health care is instead being funneled to multilateral banks in the form of steep debt payments.
The affected countries didn't land in this predicament just by their own irresponsibility. If anything, they are paying the price for recklessness on Wall Street. They have often been victimized by bankers who aggressively made loans to brutal and corrupt governments, knowing full well that those loans would not benefit the people. In many cases, soaring interest rates and compound interest make it impossible for these countries to eradicate debt even after scrupulously making their payments time and again.
The G-20 nations do appear to be coming through with increased assistance in the form of new International Monetary Fund loans. But for the very poorest countries, more loans -- on top of the old ones they can't manage -- may be pouring fuel on the fire.
If they are serious about helping the poorest countries through this worldwide depression, they must implement a bold program for additional grants and expanded debt cancellation. And they must move quickly to establish strict guidelines for responsible lending and borrowing, cracking down on predatory practices that exploit rather than empower debtor nations.
As a first step, they must condemn and regulate so-called "vulture funds," which buy up poor countries' debt for pennies on the dollar on the secondary market and then swoop in to sue for millions in damages. These funds usually operate stealthily, with little transparency, basing their operations in tax havens like the British Virgin Islands
The Democratic Republic of Congo, ravaged by civil war, disease and famine, is one of the world's most violent and troubled nations. Now it's also facing mounting fines resulting from debt-related litigation brought by a New York firm calling itself a specialist in "alternative investment opportunities and special situations within the emerging markets." Having lost 8 million people due to the lack of health care, the DRC should not be forced to contend with speculators trying to profit from the nation's misery.
The G-20 must also put an end to harmful borrowing conditions that can hurt more than the loans help. In order to get its IMF loan, for example, El Salvador was forced to raise taxes and cut gas and transportation subsidies. This at a time when developed countries are increasing similar public investments to stimulate their own economies. Under the current rules, borrowing from the IMF is too often one step forward and two steps back.
Yes, this is an ambitious agenda. But we've seen our leaders mobilize to rescue large corporations at considerable taxpayer cost. This sacrifice was necessary, they told us, because such institutions were "too big to fail." But as Kevin Gallagher, an international relations scholar, recently explained in the London Guardian, the developing world is also "too big to fail."
In today's interconnected world, we cannot wash our hands of global poverty and unjust debt, setting it aside as "their problem," which doesn't affect our prosperity or stability. You reap what you sow, the Bible tells us. And under the existing debt regime, the consequences ricochet back to the developed world in the form of expensive bank bailouts, a degraded environment, increased drug trafficking and military conflict.
But ultimately, we should move to invest in the developing world because it's the right thing to do, because our faith compels us to. The Jewish tradition asks its faithful to repair the world. Christianity compels its followers to love their neighbor as they do themselves. The Islamic tradition recognizes zakah, alms-giving by wealthy members of the community primarily to help the poor, as an essential duty. The world's superpowers must answer this call when their leaders meet in Pittsburgh this week.
Rev. John Welch, vice president for student services and dean of students at the Pittsburgh Theological Seminary, is president of the Pittsburgh Interfaith Impact Network (www.piin.org). Ruth Messinger is president of the American Jewish World Service (www.ajws.org).
Read more: http://www.post-gazette.com/pg/09263/999147-109.stm#ixzz1TW5IJ6WP
Sunday G-20 Forum: Lift the debt burden on poor countries
Without debt relief, the developing world has little hope of economic progress, say the REV. JOHN WELCH and RUTH MESSINGER
This week, when leaders of the most powerful and wealthy nations in the world gather here in Pittsburgh for the G-20 summit, they can strike a powerful blow for social justice and humanitarianism. By taking concrete steps to fight global poverty, especially through cancellation of the debt burdening poor countries, they can ease human suffering and bring hope to some of the most desperate places on Earth.
The global financial crisis, which has devastated families in Western Pennsylvania and nationwide, is having an even more dire impact in the developing world. Throughout sub-Saharan Africa and the rest of the global South, children who should be in school are instead hospitalized with diseases that could have been prevented with simple vaccinations. But the money many of these countries should be spending on basic education and health care is instead being funneled to multilateral banks in the form of steep debt payments.
The affected countries didn't land in this predicament just by their own irresponsibility. If anything, they are paying the price for recklessness on Wall Street. They have often been victimized by bankers who aggressively made loans to brutal and corrupt governments, knowing full well that those loans would not benefit the people. In many cases, soaring interest rates and compound interest make it impossible for these countries to eradicate debt even after scrupulously making their payments time and again.
The G-20 nations do appear to be coming through with increased assistance in the form of new International Monetary Fund loans. But for the very poorest countries, more loans -- on top of the old ones they can't manage -- may be pouring fuel on the fire.
If they are serious about helping the poorest countries through this worldwide depression, they must implement a bold program for additional grants and expanded debt cancellation. And they must move quickly to establish strict guidelines for responsible lending and borrowing, cracking down on predatory practices that exploit rather than empower debtor nations.
As a first step, they must condemn and regulate so-called "vulture funds," which buy up poor countries' debt for pennies on the dollar on the secondary market and then swoop in to sue for millions in damages. These funds usually operate stealthily, with little transparency, basing their operations in tax havens like the British Virgin Islands
The Democratic Republic of Congo, ravaged by civil war, disease and famine, is one of the world's most violent and troubled nations. Now it's also facing mounting fines resulting from debt-related litigation brought by a New York firm calling itself a specialist in "alternative investment opportunities and special situations within the emerging markets." Having lost 8 million people due to the lack of health care, the DRC should not be forced to contend with speculators trying to profit from the nation's misery.
The G-20 must also put an end to harmful borrowing conditions that can hurt more than the loans help. In order to get its IMF loan, for example, El Salvador was forced to raise taxes and cut gas and transportation subsidies. This at a time when developed countries are increasing similar public investments to stimulate their own economies. Under the current rules, borrowing from the IMF is too often one step forward and two steps back.
Yes, this is an ambitious agenda. But we've seen our leaders mobilize to rescue large corporations at considerable taxpayer cost. This sacrifice was necessary, they told us, because such institutions were "too big to fail." But as Kevin Gallagher, an international relations scholar, recently explained in the London Guardian, the developing world is also "too big to fail."
In today's interconnected world, we cannot wash our hands of global poverty and unjust debt, setting it aside as "their problem," which doesn't affect our prosperity or stability. You reap what you sow, the Bible tells us. And under the existing debt regime, the consequences ricochet back to the developed world in the form of expensive bank bailouts, a degraded environment, increased drug trafficking and military conflict.
But ultimately, we should move to invest in the developing world because it's the right thing to do, because our faith compels us to. The Jewish tradition asks its faithful to repair the world. Christianity compels its followers to love their neighbor as they do themselves. The Islamic tradition recognizes zakah, alms-giving by wealthy members of the community primarily to help the poor, as an essential duty. The world's superpowers must answer this call when their leaders meet in Pittsburgh this week.
Rev. John Welch, vice president for student services and dean of students at the Pittsburgh Theological Seminary, is president of the Pittsburgh Interfaith Impact Network (www.piin.org). Ruth Messinger is president of the American Jewish World Service (www.ajws.org).
Read more: http://www.post-gazette.com/pg/09263/999147-109.stm#ixzz1TW5IJ6WP
The Widening of the Panama Canal Opens New Doors for the Region
The Widening of the Panama Canal Opens New Doors for the Region
Considered one of the most important public works projects in the world, the widening of the Panama Canal is much more than a source of national pride for Panama. The Canal is the principal economic engine in the Central American isthmus and a pillar of international trade, connecting the Atlantic and Pacific oceans – and, with them, commerce between Asia and Europe. Its importance explains the high profile that the project has had ever since it was begun in a referendum in 2006, when Panama’s population decided that it wanted to carry it out. In 2014, the Canal will open its sluices with a new series of locks, amid events commemorating its centennial. According to experts interviewed by Universia Knowledge@Wharton, a sea of economic numbers and other data support the critical nature of this infrastructure project for Panama and the region.
Vielka Vasquez de Avila, a professor at the University of Panama, notes that currently, “4% of world trade” passes through the Canal, and thanks to its widening, “we will be in optimal condition, starting from 2015, to deal with what could be a possible increase of up to 6% of world trade through the Isthmus of Panama.”
This increase is a response to various factors. On the one hand, the mere announcement of the widening project has already sparked an increase in the capacity of vessels. Ultimately, authorities expect a doubling in the number of tons that will pass from the Atlantic to the Pacific, to reach 600 million tons a year, compared with 340 million today. According to a report by the Panama Canal Authority (PCA), the governmental entity that runs the Canal, this spectacular increase will come thanks to the new series of locks that have been designed to handle the “Post-Panamax” generation of mega-ships, whose enormous dimensions enable economies of scale and, at the same time, reduce operating costs per ship by from 7% to 17%. (“Panamax” ships are the largest that can fit through the Canal as it currently exists.) Their length of 366 meters is equivalent to more than seven Olympic swimming pools, enabling the vessels to hold up to 12,000 containers.
Considered one of the most important public works projects in the world, the widening of the Panama Canal is much more than a source of national pride for Panama. The Canal is the principal economic engine in the Central American isthmus and a pillar of international trade, connecting the Atlantic and Pacific oceans – and, with them, commerce between Asia and Europe. Its importance explains the high profile that the project has had ever since it was begun in a referendum in 2006, when Panama’s population decided that it wanted to carry it out. In 2014, the Canal will open its sluices with a new series of locks, amid events commemorating its centennial. According to experts interviewed by Universia Knowledge@Wharton, a sea of economic numbers and other data support the critical nature of this infrastructure project for Panama and the region.
Vielka Vasquez de Avila, a professor at the University of Panama, notes that currently, “4% of world trade” passes through the Canal, and thanks to its widening, “we will be in optimal condition, starting from 2015, to deal with what could be a possible increase of up to 6% of world trade through the Isthmus of Panama.”
This increase is a response to various factors. On the one hand, the mere announcement of the widening project has already sparked an increase in the capacity of vessels. Ultimately, authorities expect a doubling in the number of tons that will pass from the Atlantic to the Pacific, to reach 600 million tons a year, compared with 340 million today. According to a report by the Panama Canal Authority (PCA), the governmental entity that runs the Canal, this spectacular increase will come thanks to the new series of locks that have been designed to handle the “Post-Panamax” generation of mega-ships, whose enormous dimensions enable economies of scale and, at the same time, reduce operating costs per ship by from 7% to 17%. (“Panamax” ships are the largest that can fit through the Canal as it currently exists.) Their length of 366 meters is equivalent to more than seven Olympic swimming pools, enabling the vessels to hold up to 12,000 containers.
One of the reasons that Panamanian authorities decided to go ahead with the widening project was the pending loss in the competitiveness of the current infrastructure, which cannot service Post-Panamax ships. Growing demand for these mega-ships will mean they will represent 37% of the global fleet of container ships in 2011, which explains the overwhelming need that the Isthmus had for adapting to them. After hundreds of studies, the Panama Canal Authority concluded that widening the canal would mean its market share in the Northern route from Asia to the Eastern United States would increase from 38% to 41%, compared to the decline that it would suffer if it continued with its current infrastructure. That would have relegated its share of the market to only 23%.
The Suez Canal and the U.S. intermodal system (where ships arrive in port and the cargo is shipped by land across the country) are the main rivals of the Panama Canal. In addition, there could have been new competitors interested in taking the attractive piece of the pie represented by the growing maritime traffic between the Atlantic and the Pacific. Juan Carlos Martínez Lázaro, a professor at the IE Business School who is an expert in macroeconomics, notes, “Mexico and Nicaragua also planned to connect the two oceans through their respective territories.” In Mexico’s case, the model would have been similar to the current U.S. intermodal network. In the case of Nicaragua, the country analyzed the possibility of connecting the two coasts by river canals, with an infrastructure similar to what Panama has.
Although Martínez Lázaro believes that these projects are less interesting as a result of the widening of the Canal, he notes that “trade between the Pacific and the Atlantic is getting more and more important due to the 7% annual growth in trade with Asia.” China plays a fundamental role, with its spectacular economic development and its insatiable appetite for energy. Panama could also take advantage of that by providing passage for oil tankers, thus avoiding other alternatives for supply routes. “China is very interested in Venezuelan oil, and there was even a time when it was interested in financing the construction of an oil pipeline that would go into the Pacific through Colombia. But ultimately, it was not possible because of its poor relations with those countries,” adds Martínez Lázaro.
A Country Tied to a Canal
In 1889, Philippe-Jean Bunau-Varilla, an engineer, took control of the canal project, which was launched nine years before specialists at Compagnie Universelle du Canal Interoceanique de Panama approached the U.S. government in search of financing. The company wound up buying all the rights of construction and development on November 18, 1903, after getting guarantees concerning the independence of the Isthmus.
The U.S. administration of the Canal lasted for 74 years, until President Jimmy Carter and his Panamanian counterpart Omar Torrijos signed the Torrijos-Carter Treaty, which gave Panama all power over the Canal starting from December 31, 1999. One piece of information, offered by the Canal Authority, highlights the importance that this change in administration has had for Panama: During the 85 years of U.S. presence, the Panamanian government only received US$1.915 billion from the Canal, which was practically the same amount it collected during the first six years the Canal was controlled by the PCA.
As Vásquez de Ávila notes, “The Canal has played an important role in the development of the country. Today, after the transfer of the Canal to Panama, it contributes important sums of money to all national development projects. Under the administration of President Torrijos, the government set a fixed amount of millions of balboas that must be used for the development of communities, and for projects that are created by those communities. In addition, the widening of the Canal will enable important boats to cross, which would not have been able to do so before. This will lead to an increase in traffic and to greater revenues for the country. As a political concept, I believe that the administration of the Canal has been exemplary; it is something fundamental for us because the transparency of the Canal is recognized not only by Panamanians but also worldwide. People recognize that Panama has demonstrated its capacity to administer and to exceed the expectations about the Canal that existed when it was under the control of the United States.”
The PCA now estimates that over the 11 first years of the widened Canal, it will raise some US$30.588 billion. This figure is six times greater than the US$5.2 billion that the Panamanian government has designated to pay for the entire expansion project, which includes a provision of US$785 million for possible mistakes and delays. In addition, so that the population does not feel any resentment about the project, the business model designed by the authorities involves financing the project with the activity of the Canal, by increasing the tariffs that users will pay for using the infrastructure.
Economic Impact
Marco Fernández, a Panamanian who is a visiting professor of economics at Incae, puts all of this investment in context. “When you analyze how big this project is, you wonder: What is its real size in relation to the Panamanian economy? The answer is that over the next seven years, it is going to represent about 35% of all public investments, so it is a manageable project. It is like adding one-third more to a good year of public investments.” In exchange, this project will enable the country’s GDP to grow by 1.3% a year. And, most important, it will attract foreign investment and industrial development focused around the maritime sectors. “The benefits of the Canal don’t come so much from what the infrastructure represents per se, but by its collateral businesses…. In fact, many foreign investments are already coming as a result of the positive perceptions that companies around the world have about this project. All of the activity that is complementary to the Canal will have a truly big impact, and it will be begin to be felt within seven years,” adds Fernández.
The international contest held by Panamanian authorities to award the construction of a third series of locks is the most important part of this project, awakening interest among the big construction and infrastructure companies around the world. Ultimately, only three consortia were invited to present a definitive offer: one was Spanish; another was led by Bechtel from the U.S.; and a third group was Spanish and Italian. The last of the three, called United by the Canal, was the winner. Managed by Span’s Sacyr, in alliance with Italy’s Impregilo, Holland’s Jan de Nul and Panama’s Constructora Urbana, it earned the highest technical rating, while also making the most economical offer, with a budget of US$3.118 billion. That was US$280 million less than the initial budget laid out by the PCA.
The transparency of this entire project has its roots in the referendum called by president Martin Torrijos in October 2006, five months after the project was officially launched, following 120 studies made over the five previous years. The project was backed by 78% of those Panamanians who voted, although abstention was the dominant trend, since barely 42% of the population went to the polls.
After announcing the expansion, and setting a completion goal of 2014 -- the Centennial year for the Canal -- the government kicked off the international competition.
The tender offers were carefully watched over by the Bank of Panama in order to guarantee that there would be no leaks. “This has really been a very transparent process, in which the leadership of Spanish infrastructure companies has once again been made clear; they played a role in two of the three [final bids] in the competition, walking off with a victory in one of them,” notes Martínez Lázaro.
Beyond the international showcase that this process has created for the country, the Canal project will bring significant economic benefit.
During the construction period alone, forecasts call for the creation of 40,000 jobs, of which 7,000 will be directly related to the construction work, according to the PCA. By the time the third series of locks is operational, the number of jobs that will go hand in hand with the project will vary between 150,000 and 250,000.
“The economic impact of the widening of the Canal will benefit not only Panama, but also all of Latin America, because it will attract industry and will feed commercial activity in the region,” notes Fernández.
The thorniest aspect of this project has been its potential environmental impact. This is a stumbling block that has been addressed by numerous studies that have wound up endorsing its viability. As Vásquez de Ávila notes, “Every project of this sort is going to create an environmental impact because when you build a third set of locks, you are going to change what they call the ‘natural scenery.’ This change in the natural landscape will mean that much of the land will be flooded, with a resulting environmental impact. But the fundamental thing is that this impact, according to all reports made by Panamanians and foreigners, is minimal in comparison with the great benefits that the Canal can bring.”
http://www.wharton.universia.net/index.cfm?fa=viewArticle&id=1758&language=english
http://buildingthenewpanamacanal.com/
Qatar and Panama Sign Agreement ...
Wednesday, July 22, 2009
President Obama and Prime Minister al-Maliki address future of Iraq during news conference ...
Title: 'Comprehensive Partnership'
Wednesday, 22 Jul 2009
Description: President Obama and Prime Minister al-Maliki address future of Iraq during news conference
http://www.foxnews.com/search-results/m/25416509/comprehensive-partnership.htm
Wednesday, 22 Jul 2009
Description: President Obama and Prime Minister al-Maliki address future of Iraq during news conference
http://www.foxnews.com/search-results/m/25416509/comprehensive-partnership.htm
Tuesday, July 14, 2009
Timothy Geithner courts Mideast, sees gradual rebound
Tuesday, July 14, 2009
Timothy Geithner courts Mideast, sees gradual rebound
DUBAI, United Arab Emirates — U.S. Treasury Secretary Timothy Geithner reached out to Gulf Arab leaders today, stressing to some of America’s top creditors that his country has a "special responsibility" to steer the world through a global recession that may finally be showing signs of easing.
A key aim of Geithner’s trip is to convince the major oil producers that the U.S. still welcomes their business, and has plans to get itself out of a crisis stemming from what he said was an "unsustainable fiscal path."
"The force of the global recession is receding," Geithner told Saudi Arabian business leaders in the commercial hub of Jiddah, the starting point of his first official visit to the Middle East. "Global trade is just starting to expand again."
But while noting that the International Monetary Fund and other analysts have begun raising their growth forecasts for the second half of 2009 and into 2010, he cautioned that the signs of improvement were fragile and that the "process of repair and recovery is going to take considerably more time."
"This crisis has been brutal in the extent and severity of damage to economies around the world," he said. "Given the extent of damage to financial systems ... it seems realistic to expect a gradual recovery, with more than the usual ups and downs and temporary reversals."
Geithner’s Mideast trip was billed as a follow-up to President Barack Obama’s recent overtures to the region. But the stop in Saudi Arabia — the Arab world’s largest economy and OPEC’s de facto leader — is also a clear reflection of the growing financial clout of the six-nation Gulf Cooperation Council.
The treasury secretary arrives for talks in the neighboring United Arab Emirates, the No. 2 Arab economy, on Wednesday.
What Geithner has to say in private to officials in the oil-rich region could help determine whether the Obama administration’s efforts to right the U.S. economy succeed. The Arab Gulf states are major backers of U.S. companies and government bonds and, as a group, are the biggest U.S. creditor after China.
The weakening of the American economy has raised questions as to whether the dollar could remain the world’s top reserve currency, a key issue for the heavily leveraged U.S. with a deficit that recently topped $1 trillion for the first time. The slowdown also increased concerns that major foreign creditors could look to more lucrative investments in strong developing economies outside the U.S.
"The (Gulf) countries have a big stake in the financial stability of the United States. They’re a big creditor," said Nasser Saidi, chief economist of the Dubai International Financial Center. "The earlier you bring the Gulf and the Middle East onto the agenda, the better."
The Gulf states’ wealth skyrocketed during oil’s earlier boom years, but they have grown increasingly concerned as crude prices and the value of their investments soured.
Five of the GCC nations — Saudi Arabia, the UAE, Oman, Bahrain and Qatar — peg their currency to the dollar. Kuwait uses a basket of currencies that includes the greenback.
"This is a visit to really re-emphasize U.S. leadership and U.S. pre-eminence in the world economy even in the midst of this global downturn," said Tarik Yousef, dean of the Harvard-affiliated Dubai School of Government. "The last thing the U.S. wants is for people to lose confidence in its policies and its currency."
Geithner, who was in London on Monday, said the Obama administration is committed to preserving the openness of the U.S. economy. He said the U.S. realizes it has "a special responsibility" in protecting the value of the dollar, which remains the world’s dominant currency.
He held talks with Saudi King Abdullah and his top financial advisers later Tuesday, according to the official Saudi press agency SPA, and will meet with officials from the UAE’s powerful state investment funds on Wednesday. From the Emirates, he heads to Paris.
In Saudi Arabia, Geithner laid out a four-point strategy that he said is essential for economic recovery.
It includes stabilizing and repairing the U.S. financial system, helping offset the dramatic contraction in demand, working with the major economies of the world on a coordinated program of macroeconomic stimulus and financial stabilization and focusing on the future by building a stronger and more productive economy.
"In the United States, we need to make sure that as we rebuild, we build a stronger and more productive economy, less prone to crisis, with the gains of growth more broadly shared," he said, adding that the government was determined to cut the
deficit once officials were sure the global crisis was over.
America "was on an unsustainable fiscal path before this crisis, and we will not succeed in establishing sustainable recovery without a credible commitment to address our long-term deficits," he said.
http://www.bostonherald.com/news/us_politics/view.bg?articleid=1184887&format=text
Timothy Geithner courts Mideast, sees gradual rebound
DUBAI, United Arab Emirates — U.S. Treasury Secretary Timothy Geithner reached out to Gulf Arab leaders today, stressing to some of America’s top creditors that his country has a "special responsibility" to steer the world through a global recession that may finally be showing signs of easing.
A key aim of Geithner’s trip is to convince the major oil producers that the U.S. still welcomes their business, and has plans to get itself out of a crisis stemming from what he said was an "unsustainable fiscal path."
"The force of the global recession is receding," Geithner told Saudi Arabian business leaders in the commercial hub of Jiddah, the starting point of his first official visit to the Middle East. "Global trade is just starting to expand again."
But while noting that the International Monetary Fund and other analysts have begun raising their growth forecasts for the second half of 2009 and into 2010, he cautioned that the signs of improvement were fragile and that the "process of repair and recovery is going to take considerably more time."
"This crisis has been brutal in the extent and severity of damage to economies around the world," he said. "Given the extent of damage to financial systems ... it seems realistic to expect a gradual recovery, with more than the usual ups and downs and temporary reversals."
Geithner’s Mideast trip was billed as a follow-up to President Barack Obama’s recent overtures to the region. But the stop in Saudi Arabia — the Arab world’s largest economy and OPEC’s de facto leader — is also a clear reflection of the growing financial clout of the six-nation Gulf Cooperation Council.
The treasury secretary arrives for talks in the neighboring United Arab Emirates, the No. 2 Arab economy, on Wednesday.
What Geithner has to say in private to officials in the oil-rich region could help determine whether the Obama administration’s efforts to right the U.S. economy succeed. The Arab Gulf states are major backers of U.S. companies and government bonds and, as a group, are the biggest U.S. creditor after China.
The weakening of the American economy has raised questions as to whether the dollar could remain the world’s top reserve currency, a key issue for the heavily leveraged U.S. with a deficit that recently topped $1 trillion for the first time. The slowdown also increased concerns that major foreign creditors could look to more lucrative investments in strong developing economies outside the U.S.
"The (Gulf) countries have a big stake in the financial stability of the United States. They’re a big creditor," said Nasser Saidi, chief economist of the Dubai International Financial Center. "The earlier you bring the Gulf and the Middle East onto the agenda, the better."
The Gulf states’ wealth skyrocketed during oil’s earlier boom years, but they have grown increasingly concerned as crude prices and the value of their investments soured.
Five of the GCC nations — Saudi Arabia, the UAE, Oman, Bahrain and Qatar — peg their currency to the dollar. Kuwait uses a basket of currencies that includes the greenback.
"This is a visit to really re-emphasize U.S. leadership and U.S. pre-eminence in the world economy even in the midst of this global downturn," said Tarik Yousef, dean of the Harvard-affiliated Dubai School of Government. "The last thing the U.S. wants is for people to lose confidence in its policies and its currency."
Geithner, who was in London on Monday, said the Obama administration is committed to preserving the openness of the U.S. economy. He said the U.S. realizes it has "a special responsibility" in protecting the value of the dollar, which remains the world’s dominant currency.
He held talks with Saudi King Abdullah and his top financial advisers later Tuesday, according to the official Saudi press agency SPA, and will meet with officials from the UAE’s powerful state investment funds on Wednesday. From the Emirates, he heads to Paris.
In Saudi Arabia, Geithner laid out a four-point strategy that he said is essential for economic recovery.
It includes stabilizing and repairing the U.S. financial system, helping offset the dramatic contraction in demand, working with the major economies of the world on a coordinated program of macroeconomic stimulus and financial stabilization and focusing on the future by building a stronger and more productive economy.
"In the United States, we need to make sure that as we rebuild, we build a stronger and more productive economy, less prone to crisis, with the gains of growth more broadly shared," he said, adding that the government was determined to cut the
deficit once officials were sure the global crisis was over.
America "was on an unsustainable fiscal path before this crisis, and we will not succeed in establishing sustainable recovery without a credible commitment to address our long-term deficits," he said.
http://www.bostonherald.com/news/us_politics/view.bg?articleid=1184887&format=text
Thursday, July 9, 2009
IMF does not see Asia decoupling from world economy
July 9, 2009
IMF does not see Asia decoupling from world economy
WASHINGTON (Reuters) - Asia cannot decouple from the global economy despite signs that it is emerging from the worldwide slump even faster than many economists had expected, an International Monetary Fund official said on Wednesday.
Olivier Blanchard, the IMF's chief economist, said strong growth particularly out of China and India had rekindled hopes that the region could decouple from the slower-growing world economy and recover on its own.
"We do not believe that this will be the case," he said at a news conference. "The links between Asia and the rest of the world economy are too strong, and a full recovery in Asia will require a full recovery from the world as a whole."
IMF does not see Asia decoupling from world economy
WASHINGTON (Reuters) - Asia cannot decouple from the global economy despite signs that it is emerging from the worldwide slump even faster than many economists had expected, an International Monetary Fund official said on Wednesday.
Olivier Blanchard, the IMF's chief economist, said strong growth particularly out of China and India had rekindled hopes that the region could decouple from the slower-growing world economy and recover on its own.
"We do not believe that this will be the case," he said at a news conference. "The links between Asia and the rest of the world economy are too strong, and a full recovery in Asia will require a full recovery from the world as a whole."
THE NEW CURRENCY OF THE FUTURE PRESENTED TO THE G8 LEADERS
July 8, 2009
THE NEW CURRENCY OF THE FUTURE PRESENTED TO THE G8 LEADERS
The sample of the first “test” currency from the international project for a new virtual global currency, given the draft name, “United Future World Currency – Eurodollar”, will be presented as an exclusive gift to Heads of State and Government at the G8.
The final name and symbol for the new currency will be decided in a competition for children in 1000 schools throughout the world, organised by the Italian Museo del Tempo. Although the initial aim is to unite the United States of America with the United States of Europe, it will also be open to other countries.
The example of the Euro, which united countries with different histories and cultures under the same currency, is a concrete precedent that demonstrates how this project can indeed come to life and gather together nations from several different continents.In sending his message of wishes for the project to its coordinator, Sandro Sassoli, Prime Minister Silvio Berlusconi emphasised that “It is interesting that young students from different countries can get involved in an international project that helps them understand certain aspects of international economic policy, allowing them to prepare for the future monetary union that we hope for.”
In 1996, Sandro Sassoli conceived the idea of the UFWC project, having taken advice from Arthur Schlessinger Jr, former advisor to President John F. Kennedy.An international jury, comprising the heads of the world’s leading mints, economists, Nobel-prize winners, and figures from the world of culture, will have the task of selecting and rewarding the children’s best work on giving the new currency its name and symbol.The Royal Mint of Belgium has been the first to issue a test coin for this new currency, a special rare gold edition that will be gifted at the forthcoming G8 Summit.
The coin has been designed by Luc Luycx, author of the common side of the Euro coins. The project will study security and anti-counterfeit measures; meanwhile, experimentation to seek innovative solutions for an “intelligent” money are also underway with an university. The currency will also undergo an important public test run at the 2015 Milan Universal Expo.
Info in English Tel +393358792124 Internet : www.futureworldcurrency E-Mail : info@futureworldcurrency.com6th July 2009www.futureworldcurrency.com
Other gifts offered to G8 leaders include hand-made books weighing 53lb and gold coins representing an imaginary future world currency.The coins, made by Belgian Luc Luycx, who designed one side of the euro coins, are called "eurodollars", in a symbolic call for a common currency to unite Europe and the United States.G8 leaders upbeat on economic recovery
09 July 2009
By Gerri Peev
THE world's major industrialised nations yesterday said the global economy was beginning to stabilise, while the International Monetary Fund said the world was beginning to pull out of a recession.Leaders of the elite G8 club also warned however that "significant risks remain" although there were improved signs of consumer confidence.At the Group of Eight summit in L'Aquila, Italy, leaders also managed to strike a historic deal to limit the rise of world temperatures to 2C or below and slash emissions of greenhouses gases by 80 per cent by the middle of this century.
They also agreed a joint statement on the economy, saying: "While there are signs of stabilisation, including recovery in stock markets, a decline in interest rate spreads, improved business and consumer confidence, the situation remains uncertain and significant risks remain to economic and financial stability."The three-day summit began yesterday with a working lunch on the economy.Leaders said they were committed to withdrawing stimulus spending, but only when a recovery looked secure.
"We agreed on the need to prepare appropriate strategies for unwinding extraordinary policy measures to respond to the crisis once the recovery is assured," the statement said.Prime Minister Gordon Brown – who has been the main proponent of stimulus packages in contrast to the more cautious Germans – said countries should only drop the strategy once recovery was assured.He said: "Everybody agrees with this language and everybody agrees we have got to be vigilant about what is happening to our economies and to the world economy."
The Prime Minister added that the G8 leaders would show that they are "prepared to take action" on threats to recovery, including rising oil prices, banks' reluctance to lend and moves towards protectionism.However, the communique from the G8 was more cautious than an assessment from the International Monetary Fund.In its latest World Economic Outlook, it said economic growth could hit 2.5 per cent in 2010, a more optimistic figure than the 1.9 per cent reported in April.
This year, it said, the global economy is likely to decline 1.4 per cent, slightly steeper than the 1.3 per cent contraction it saw in April.Leaders were more upbeat about their agreement in principle on the environment.Mr Brown predicted that the deal would spark a global agreement at a United Nations summit later this year to eventually halve emissions by the middle of this century.
"We have agreed for the first time that average global temperatures must rise by no more than 2C. That is a historic agreement," he said.The G8 had previously been unable to agree on that temperature limit – now set as 2C – as a political goal. The agreement was reached thanks to the change of administration in the United States, with president Barack Obama committing to cut emissions to tackle global warming.It remains only a target, however, with China and India not party to the agreement.
The emerging powerhouses are upset that their richer counterparts, reneged on pledges to finance and transfer technology.Mr Brown will hope to secure their agreement to limiting temperature rises to 2C at a meeting with China and India today.
Fashionista Brown joins the Silvio set after gift of £500 parka
IT WAS Tony Blair who heralded the Cool Britannia era when he invited Oasis guitarist Noel Gallagher to Downing Street, but Gordon Brown is set for a fashion makeover of his own at the G8 summit.The Prime Minister was gifted a £500 limited-edition parka jacket – as favoured by Oasis stars Noel and Liam Gallagher and footballer David Beckham – by Italian prime minister Silvio Berlusconi.US president Barack Obama was also among the world leaders to receive the gift, dubbed the "president parka".The military-style jacket was designed in collaboration with Mr Berlusconi and has been signed by him. Measurements were estimated from pictures of the G8 leaders.
The jackets will go on sale after the summit, with a percentage of the profits going to the L'Aquila earthquake fund. L'Aquila was struck by a powerful earthquake in April that killed nearly 300 people.Asked about the gift at a press conference, Mr Brown said he had not heard about it. It is understood he may not yet have opened his present.Other gifts offered to G8 leaders include hand-made books weighing 53lb and gold coins representing an imaginary future world currency.
The books, commissioned by Mr Berlusconi from the Bologna-based art publishing house Fondazione Marilena Ferrari, have personalised dedications for each leader.
The coins, made by Belgian Luc Luycx, who designed one side of the euro coins, are called "eurodollars", in a symbolic call for a common currency to unite Europe and the United States.The 28in by 17.5in Canova books were made at no cost by 23 Italian craftsmen using traditional techniques, the publishing house said.
The books' covers are decorated with white marble bas-reliefs and the volumes are bound with silk and gold thread. They include etchings and dozens of black and white photographs of Canova's artworks.
THE NEW CURRENCY OF THE FUTURE PRESENTED TO THE G8 LEADERS
The sample of the first “test” currency from the international project for a new virtual global currency, given the draft name, “United Future World Currency – Eurodollar”, will be presented as an exclusive gift to Heads of State and Government at the G8.
The final name and symbol for the new currency will be decided in a competition for children in 1000 schools throughout the world, organised by the Italian Museo del Tempo. Although the initial aim is to unite the United States of America with the United States of Europe, it will also be open to other countries.
The example of the Euro, which united countries with different histories and cultures under the same currency, is a concrete precedent that demonstrates how this project can indeed come to life and gather together nations from several different continents.In sending his message of wishes for the project to its coordinator, Sandro Sassoli, Prime Minister Silvio Berlusconi emphasised that “It is interesting that young students from different countries can get involved in an international project that helps them understand certain aspects of international economic policy, allowing them to prepare for the future monetary union that we hope for.”
In 1996, Sandro Sassoli conceived the idea of the UFWC project, having taken advice from Arthur Schlessinger Jr, former advisor to President John F. Kennedy.An international jury, comprising the heads of the world’s leading mints, economists, Nobel-prize winners, and figures from the world of culture, will have the task of selecting and rewarding the children’s best work on giving the new currency its name and symbol.The Royal Mint of Belgium has been the first to issue a test coin for this new currency, a special rare gold edition that will be gifted at the forthcoming G8 Summit.
The coin has been designed by Luc Luycx, author of the common side of the Euro coins. The project will study security and anti-counterfeit measures; meanwhile, experimentation to seek innovative solutions for an “intelligent” money are also underway with an university. The currency will also undergo an important public test run at the 2015 Milan Universal Expo.
Info in English Tel +393358792124 Internet : www.futureworldcurrency E-Mail : info@futureworldcurrency.com6th July 2009www.futureworldcurrency.com
Other gifts offered to G8 leaders include hand-made books weighing 53lb and gold coins representing an imaginary future world currency.The coins, made by Belgian Luc Luycx, who designed one side of the euro coins, are called "eurodollars", in a symbolic call for a common currency to unite Europe and the United States.G8 leaders upbeat on economic recovery
09 July 2009
By Gerri Peev
THE world's major industrialised nations yesterday said the global economy was beginning to stabilise, while the International Monetary Fund said the world was beginning to pull out of a recession.Leaders of the elite G8 club also warned however that "significant risks remain" although there were improved signs of consumer confidence.At the Group of Eight summit in L'Aquila, Italy, leaders also managed to strike a historic deal to limit the rise of world temperatures to 2C or below and slash emissions of greenhouses gases by 80 per cent by the middle of this century.
They also agreed a joint statement on the economy, saying: "While there are signs of stabilisation, including recovery in stock markets, a decline in interest rate spreads, improved business and consumer confidence, the situation remains uncertain and significant risks remain to economic and financial stability."The three-day summit began yesterday with a working lunch on the economy.Leaders said they were committed to withdrawing stimulus spending, but only when a recovery looked secure.
"We agreed on the need to prepare appropriate strategies for unwinding extraordinary policy measures to respond to the crisis once the recovery is assured," the statement said.Prime Minister Gordon Brown – who has been the main proponent of stimulus packages in contrast to the more cautious Germans – said countries should only drop the strategy once recovery was assured.He said: "Everybody agrees with this language and everybody agrees we have got to be vigilant about what is happening to our economies and to the world economy."
The Prime Minister added that the G8 leaders would show that they are "prepared to take action" on threats to recovery, including rising oil prices, banks' reluctance to lend and moves towards protectionism.However, the communique from the G8 was more cautious than an assessment from the International Monetary Fund.In its latest World Economic Outlook, it said economic growth could hit 2.5 per cent in 2010, a more optimistic figure than the 1.9 per cent reported in April.
This year, it said, the global economy is likely to decline 1.4 per cent, slightly steeper than the 1.3 per cent contraction it saw in April.Leaders were more upbeat about their agreement in principle on the environment.Mr Brown predicted that the deal would spark a global agreement at a United Nations summit later this year to eventually halve emissions by the middle of this century.
"We have agreed for the first time that average global temperatures must rise by no more than 2C. That is a historic agreement," he said.The G8 had previously been unable to agree on that temperature limit – now set as 2C – as a political goal. The agreement was reached thanks to the change of administration in the United States, with president Barack Obama committing to cut emissions to tackle global warming.It remains only a target, however, with China and India not party to the agreement.
The emerging powerhouses are upset that their richer counterparts, reneged on pledges to finance and transfer technology.Mr Brown will hope to secure their agreement to limiting temperature rises to 2C at a meeting with China and India today.
Fashionista Brown joins the Silvio set after gift of £500 parka
IT WAS Tony Blair who heralded the Cool Britannia era when he invited Oasis guitarist Noel Gallagher to Downing Street, but Gordon Brown is set for a fashion makeover of his own at the G8 summit.The Prime Minister was gifted a £500 limited-edition parka jacket – as favoured by Oasis stars Noel and Liam Gallagher and footballer David Beckham – by Italian prime minister Silvio Berlusconi.US president Barack Obama was also among the world leaders to receive the gift, dubbed the "president parka".The military-style jacket was designed in collaboration with Mr Berlusconi and has been signed by him. Measurements were estimated from pictures of the G8 leaders.
The jackets will go on sale after the summit, with a percentage of the profits going to the L'Aquila earthquake fund. L'Aquila was struck by a powerful earthquake in April that killed nearly 300 people.Asked about the gift at a press conference, Mr Brown said he had not heard about it. It is understood he may not yet have opened his present.Other gifts offered to G8 leaders include hand-made books weighing 53lb and gold coins representing an imaginary future world currency.
The books, commissioned by Mr Berlusconi from the Bologna-based art publishing house Fondazione Marilena Ferrari, have personalised dedications for each leader.
The coins, made by Belgian Luc Luycx, who designed one side of the euro coins, are called "eurodollars", in a symbolic call for a common currency to unite Europe and the United States.The 28in by 17.5in Canova books were made at no cost by 23 Italian craftsmen using traditional techniques, the publishing house said.
The books' covers are decorated with white marble bas-reliefs and the volumes are bound with silk and gold thread. They include etchings and dozens of black and white photographs of Canova's artworks.
Wednesday, July 8, 2009
Bumped '2009' ~ Pope Urges Forming New World Economic Order to Work for the ‘Common Good’ ...
and remember this article ~ Pope holds ’special’ meeting with Bush Friday 13, June 2008
July 8, 2009
Pope Urges Forming New World Economic Order to Work for the ‘Common Good’
VATICAN CITY — Pope Benedict XVI on Tuesday called for a radical rethinking of the global economy, criticizing a growing divide between rich and poor and urging the establishment of a “true world political authority” to oversee the economy and work for the “common good.”
Continues ...read more ..
July 8, 2009Pope Urges Forming New World Economic Order to Work for the ‘Common Good’
VATICAN CITY — Pope Benedict XVI on Tuesday called for a radical rethinking of the global economy, criticizing a growing divide between rich and poor and urging the establishment of a “true world political authority” to oversee the economy and work for the “common good.”
Continues ...read more ..
Monday, July 6, 2009
IRAQ, IMF NEAR DEAL ON $5.4BN EASY LOAN
Iraq, IMF near deal on $5.4bn easy loan
Dow Jones Newswires /Baghdad Iraq will meet with the International Monetary Fund, or IMF, in September to finalise a $5.4bn standby loan to the war-battered country and may launch the sale of treasury bonds worth $3bn within two months, a central bank official said.
The IMF in June outlined its loan conditions to an Iraqi delegation in Amman, including a call for restructuring of state banks and banking sector reform, senior central bank advisor Mudher Kasim told Zawya Dow Jones late on Saturday.
“We think the conditions of the IMF are reasonable and the bank is implementing them prior to applying for the loan,” Kasim said. The loan is set to help with a budget shortfall resulting from a drop in crude oil prices from a record high of $147 a barrel in July last year to below $40 a barrel late last year, he said.
Iraq’s 2009 budget includes an $18bn deficit. So far Baghdad has cut its 2009 budget three times because of falling oil prices. Iraq relies on crude exports for more than 95% of its state expenditure and is in desperate need of cash to rebuild its infrastructure hit by war, violence and insurgency.
The IMF usually sets conditions for any proposed loan given to countries.Iraq will receive the loan, which represents 300% of Iraq’s IMF set quota, immediately after its signing, Kasim said.
It will be paid back in two installments over five years at an interest rate of just above 1%, he added. The fund also welcomed Iraq’s initiative to reconsider its food rationing system, so only those in need receive subsidised food stuffs, Kasim said.
The Iraqi parliament voted earlier this year to exclude from the programme those with a monthly income of at least 1.5mn Iraqi dinars ($1,300). In line with other IMF loan conditions, Iraq’s central bank will need to pursue currency stability and curb inflation, Kasim said.
The country’s inflation rate in April fell to 3.7%, the lowest level in the past three decades on lower prices of food, energy and other commodities. The rate rose, however, to 4.7% in May, driven by an increase in rents for houses and apartments in Baghdad, Kasim added. Rents are rising amid a shortage of 3.5mn housing units in Baghdad, where half the population of 7mn doesn’t own houses or flats, he said.
http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=301229&version=1&template_id=48&parent_id=28
Dow Jones Newswires /Baghdad Iraq will meet with the International Monetary Fund, or IMF, in September to finalise a $5.4bn standby loan to the war-battered country and may launch the sale of treasury bonds worth $3bn within two months, a central bank official said.
The IMF in June outlined its loan conditions to an Iraqi delegation in Amman, including a call for restructuring of state banks and banking sector reform, senior central bank advisor Mudher Kasim told Zawya Dow Jones late on Saturday.
“We think the conditions of the IMF are reasonable and the bank is implementing them prior to applying for the loan,” Kasim said. The loan is set to help with a budget shortfall resulting from a drop in crude oil prices from a record high of $147 a barrel in July last year to below $40 a barrel late last year, he said.
Iraq’s 2009 budget includes an $18bn deficit. So far Baghdad has cut its 2009 budget three times because of falling oil prices. Iraq relies on crude exports for more than 95% of its state expenditure and is in desperate need of cash to rebuild its infrastructure hit by war, violence and insurgency.
The IMF usually sets conditions for any proposed loan given to countries.Iraq will receive the loan, which represents 300% of Iraq’s IMF set quota, immediately after its signing, Kasim said.
It will be paid back in two installments over five years at an interest rate of just above 1%, he added. The fund also welcomed Iraq’s initiative to reconsider its food rationing system, so only those in need receive subsidised food stuffs, Kasim said.
The Iraqi parliament voted earlier this year to exclude from the programme those with a monthly income of at least 1.5mn Iraqi dinars ($1,300). In line with other IMF loan conditions, Iraq’s central bank will need to pursue currency stability and curb inflation, Kasim said.
The country’s inflation rate in April fell to 3.7%, the lowest level in the past three decades on lower prices of food, energy and other commodities. The rate rose, however, to 4.7% in May, driven by an increase in rents for houses and apartments in Baghdad, Kasim added. Rents are rising amid a shortage of 3.5mn housing units in Baghdad, where half the population of 7mn doesn’t own houses or flats, he said.
http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=301229&version=1&template_id=48&parent_id=28
Wednesday, July 1, 2009
The Hegelian Principle Helps Explain How the Powerful Got That Way ...
The Hegelian Principle Helps Explain How the Powerful Got That WayJuly 2008
How did the powerful gain power over the rest of us? In a time when the power and freedom of the average American is being eroded at terrific speed, many of us wonder how this could be happening. What we may not realize it that the powerful have specific tools or principles to use to con the rest of us into surrendering our power to them. One of the most effective principles used in the last several years with great success is the Hegelian Principle.
The principle is simple, consisting of only three steps toward a preconceived goal. Once you are able to see how it works, you may want to analyze many of the events unfolding around you in terms of this principle. As the principle is often used today, it can be explained as:
Step One: Create a problem or conflict - Perceive a problem that exists and build it up out of proportion to its actual importance, or create a problem or conflict where none existed before.
Step Two: Publicize the problem and create opposition to it - Relentlessly place stories about this problem in the major media outlets. Report on it daily until it becomes a steady drumbeat and a truism for the public who then begin clamoring for a solution to this problem.
Step Three: Offer a solution - The best solutions are those that appeal to the emotions of the public and make them think something really good is being done for them, when in fact, something really bad is being done to them. This solution is one that the public never knew it needed until the conditioning of Step Two was successfully completed.
A simple example of the Hegelian Principle at work was the food industries' conning of the public to throw out their butter and run to buy margarine. It goes like this:
Step One: Food industry is geared up to provide food for soldiers during WWII. When war ends, food industry needs to turn its capacity into something it can sell during peace time. It wants to use cheap ingredients to make a high margin product and decides on the manufacture of margarine, but needs to find a way to get the public to buy it. They decide on a scheme to turn the people against butter.
Step Two: Food companies spread propaganda convincing the populace that butter is deadly to their health. Appeal to fear. Get doctors and nutritionists to help in the spreading of propaganda. Sponsor medical studies to "prove" that butter is deadly. Convince housewives who had grown up healthy while eating butter that they are placing their families in jeopardy if they serve butter.
Step Three: Food companies rush in to save the American public from having to put butter on their tables. They present margarine. Women who want their families to love them stampede to buy margarine. Voila!
**One of the classic and most sinister examples of the Hegelian Principle involves the Nazi's rise to power that quickly followed the burning of the German Parliament building, the Reichstag, on the night of February 27, 1933.
Step One: Adolf Hitler, the new Chancellor of Germany, has no intention of abiding by the rules of democracy that installed him into the Chancellor position. He intends only to use those rules to legally establish himself as dictator as quickly as possible, and begin the Nazi revolution. But opposition lurks in his path.
The Nazis, led by Joseph Goebbels, devise a scheme to burn down the Reichstag, the building where the elected officials of the republic meet to conduct the daily business of government, and blame it on the Communist opposition.
Step Two: Hitler acts as though he is enraged over the fire and speaks out that the German people have been too soft on the Communists, proclaiming that "every Communist official must be shot. All friends of the Communists must be locked up. And that goes for the Social Democrats and the Reichsbanner as well!" Hitler directs the newspaper's coverage of the fire. He and Goebbels put together papers full of lies about a Communist plot to violently seize power in Berlin. The newspaper proclaimed that only Hitler and the Nazis could prevent a Communist takeover.
Step Three: Hitler demands an emergency decree to overcome the crisis. There is little resistance, and the decree is signed "for the protection of the people and the State". According to the decree, "Restrictions on the personal liberty, on the right of free expression of opinion, including freedom of the press; on the rights of assembly and association; and violations of the privacy of postal, telegraphic and telephonic communications and warrants for house searches, orders for confiscations as well as restrictions on property, are also permissible beyond the legal limits otherwise prescribed." The Nazi dictatorship is established.
The Hegelian Principle was first described by Georg Wilhelm Friedrich Hegel, a 19th century German philosopher. The principle defined a method used to produce a oneness of mind on any given issue or thought. Since its conception, it has been used repeatedly and very successfully to gain power, status, money and control. The original terms for the three steps were Thesis, Antithesis, and Synthesis.
Under Hegel's theory, one type of government or society (Thesis) would give rise to another that was the opposite of this type of government or society (Antithesis). This would result in conflict between the two types since they were opposites. After thesis and antithesis ideas battle each other for an extended time without either side winning, both sides become ready for change. This change (Synthesis) is then brought about by the creation of a third type of government or society.
These three steps are easily seen in the example of the Nazi rise to power, in which the Democratic government battled the Communist form of government. When the public was conditioned to ask for change, a new government system was installed.
The principle is often seen at work in the downhill slide of education toward the goal of ensuring children grow up unable to be intelligent participants in their democracy.
Step One - The federal government wants to assert control over the educational system, previously the providence of the states. As a way of doing this, the Elementary and Secondary Education Act (ESEA) is created as a tool to gain power by doling out money to the school districts if they would accept the strings attached. Slowly but surely the pot of federal dollars that could be had is increased, while state support is undermined. Under ESEA mandates, academic programs are replaced by social programs.
Step Two - As academic programs are displaced, test scores drop, and juvenile problems increase as children become more and more illiterate, and parental and public outcry becomes louder. Teachers are made the fall guys for the illiteracy of their students. Attempts at fixing the problems involve the creation of ever more social programs, and fail to address the issue of children's failure to learn. Parents are blamed as schools make inroads into controlling the parent/child relationship by pitting parents against their own children over school issues. Education reform is officially sanctioned as Bush announces himself the education president, proclaiming that "The people have been heard. We must do something about our ailing education system."
Step Three - We are in step three now. Progressive socialist education is upon us. We are creating a generation of people incapable of thinking, reasoning, speaking and questioning. The individual will soon be extinct, having been stripped of his uniqueness and become no more than a commodity to be valued accordingly. With the loss of uniqueness goes the loss of independence and the ability to advocate for one's self. The new generation emerges as a willing participant in its own enslavement.
Reference: Hornberger, Jacob "How Hitler Became A Dictator", The Future of Freedom Foundation
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