September 29, 2010 White House Shifts with Staff Departures
Speculation is mounting that White House Chief of Staff Rahm Emanuel will quit his job later this week and return to Chicago to run for mayor (USNews). This follows the announced departures of director of the National Economic Council Lawrence Summers, former head of the White House Economic Council Christina Romer, and budget director Peter Orszag. Summers to Leave Obama's Economic Team ...
Brazil: Brazilian finance minister Guido Mantega warned of an "international currency war" (MercoPress) as countries across the world devalue their currencies artificially to make exports cheaper and bolster economic recovery. He said his government would not let the Brazilian real, which has gained 35 percent against the U.S. dollar since 2009, "strengthen too much and, much less, suffer harming effects from other countries' exchange rate policies." ALERT ~ "CURRENCY WAR" Brazil warns of ‘currency war’ ...
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EU Workers Protest Austerity in Brussels
Thousands of people from across the EU gathered in Brussels to protest (BBC) the severe austerity measures many national governments are planning in response to the sovereign debt crisis. A general strike began in Spain, with protests planned in Greece, Poland, Italy, Latvia, Ireland, and Serbia. The European Trade Union Confederation (Etuc) said the protests represent the frustration of many workers who feel they are paying for the mistakes of banks and the financial sector. The slogan of the protest in Brussels, which unions hoped would draw one hundred thousand people from thirty countries, was "No to austerity, priority to jobs and growth." Etuc said the financial crisis had already led to twenty-three million job losses across the EU. In Spain, the first nationwide strike in eight years (WSJ) nearly shut down Madrid's commuter trains and buses and brought most industrial production to a halt.
Fears about another Greek-like debt crisis intensified in Ireland and Portugal, as investors sold off bonds and analysts warned the countries might be heading for bailout requests (WashPost). Standard & Poor's warned it might further downgrade Irish bonds due to the skyrocketing cost of the country's government bank rescue, which could reach $46 billion. The Irish economy stalled in the second quarter, dropping 5 percent at an annualized rate. Portugal's failure to rein in loose spending has also exacerbated fears of a new round of financial turbulence in global markets. Bill Clinton to promote US investment ahead of Northern Ireland Investment Conference Oct. 19th in DC ...
Analysis:
In the Wall Street Journal, Irwin Stelzer says the European Central Bank's demands for more spending cuts and higher taxes in eurozone countries might "just be producing the downward spiral that American President Barack Obama and Britain's shadow-chancellor-in-waiting Ed Balls have been warning about."
In the Financial Times, Ralph Atkins says it is unclear whether "Germany can offer the leadership the eurozone wants, or needs."
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No Progress on Mideast Talks
A statement from Israeli Prime Minister Benjamin Netanyahu's office gave no sign of any progress toward an agreement that could avert a threatened Palestinian walkout (Reuters) over settlement building.
If Israelis and Palestinians can't reach an accommodation on settlement construction, talks will end and credibility on all sides--including that of the Obama administration--will suffer.
Turkey: Turkey's deputy prime minister said that Turkish banks and businesses are free to trade with Iranian firms, which is likely to increase concern in Washington over Ankara's continued trade with Tehran (WSJ) despite the U.S.-led sanctions program
