Wednesday, June 30, 2010

PoliticsUSA: Banks: House of Representatives passes bill regulating banks and finance, Senate mum

MarketWatch's Ronald D. Orol sends out this Market Pulse alert, "House approves sweeping bank reform bill" (June 30, 2k10, 6:54 p.m. EDT):

After making changes to appease moderate Republicans in the Senate, the House on Wednesday approved the most significant shake-up of the regulation of U.S. banks since the Great Depression by placing new restrictions on the nation's biggest banks, reining in the Federal Reserve and crafting a major new consumer-protection division for mortgage and credit-card products. The mammoth legislative package -- which passed 237 to 192 - moves the Obama administration one step closer to having a significant triumph in its efforts to reign in Wall Street after a financial crisis that shook the economy to the brink in Sept. 2008. The legislation, which is a combination of House and Senate bank bills, must still receive a filibuster-proof 60 votes to pass in the Senate. A Senate vote isn't expected until the week of July 12. The bill had almost no GOP backers.
Americans need some reform of lax regulation immediately, so let's hope that the Senate confirms, as this House version simply ratifies the negotiation results of a joint committee of the two Houses of Congress.  The Senate now needs to adopt the same text approved by its delegates on the joint committee, after approval by the Senate the bill becomes ready for the Prez's signature.
Senate support for the far-reaching bill remained in flux, however. The Senate was forced to delay its vote to mid-July, denying President Barack Obama a victory before Independence Day. Democrats struggled to secure the votes of a handful of Republican senators even after meeting their demands and backing down on a $19 billion tax on big banks and hedge funds.   Read more ...



Sunday, June 27, 2010

Economics: Global: G20 negotiate pledges to cut deficits by half, by 2013

With the G20 busy at its intergovernmental business -- yesterday having been the scene of on-location riots, clubbings, bloodied protesters, and 16,000 police resisting the violent protesters, and maintaining security for the leaders of the twenty countries -- the focus of the assemblage turned to cutting deficits by 2010, in order to avoid global financial crises. An article by Ellen Hasenkamp stresses the concensus emerging at this year's G20:

The heads of the world's major industrialized powers agreed to adopt what they dubbed "growth-friendly deficit reduction" proposals, but applied on a country-by-country basis, bowing to concerns from emerging nations.

"Recent events highlight the importance of sustainable public finances," said a draft final summit statement obtained by AFP.

In the document, leaders promise to put in place "plans to deliver fiscal sustainability, differentiated for and tailored to national circumstances."

The plan, which we can call 'the Merkel Plan," is to cut in half the deficits of the leading industrial nations -- the European stars Britain, France and German, with the USA, and Canada -- by 2013.
The deal will mark a minor triumph for European leaders, led by German Chancellor Angela Merkel, who have pushed to rein in ballooning debt despite fears from the United States that it would stifle fledgling growth.

Merkel stressed, however, that the deal, which also includes a plan for nations to stabilize or reduce government debt-to-GDP ratios by 2016, would only apply to the most developed industrialized nations.

"This is an important common goal that will lead to sustainable growth," she told reporters. "We as Europeans can say that our path has found support.

-- Ellen Hasenkamp, "G20 leaders aim for deal to cut deficits by 2013," Agence France Presse via Yahoo!News )Jun27,2k10).
Brazil and the UN's Ban Ki-moon raised objections, saying the move woud hurt poorer nations.

-- EconoMix

PoliticsCanada: G8 > G20 Summits in Toronto on Fire!

I slept and Toronto is on fire! When I got up praying as I dressed and said my morning ablutions in the late afternoon, having been to bed by 8 am in safe and sound Toronto. Not so!

When I got my first wiffs of the day's news nooz nuz, I went to a small public channel that specializes in politics and is having a public presentation of the diplomats introducing the heads of states attending the G20. Stephen Harper is host diplomat. It was the day between G8 and G20, in Toronto. The City hosting the event/s is Toronto, which has been carrying on a campaign to boost investment in Toronto and Ontario, Toronto a large metropolis which is a financial hub, as well as political-capitol city, yet not geographically central to the entire province, let alone the country

Will be back, I hope and pray.

Update (June 27, 2k10):

One burning police car, plume of dark rank smoke, business windows on street smashed, some protesters smashed and bloodied, 400 arrested, G20 sails on. Watched lots of local TV coverage yesterday, but today I'll look for any further USA coverage on TV. Also, monitoring the online press.

Associated Press via Yahoo! News by Rob Gillies:
"Police arrest more than 400 at Toronto summit"


-- Owlb

Friday, June 25, 2010

Economics: G8: Hard core advanced industrial countries gather in Toronto

Agence France Presse reporter, Jo Biddle, says "G8 summit gathers amid budget cut row" (Jun25,2k10).
The delegates are meeting in  a "remote location" near Huntsville, Muskoka, about 220 kilometers (140 miles) north of Toronto.

TORONTO, Canada (AFP) – The United States urged Europe to reform its economies to raise growth as world leaders gathered for a summit Friday, amid tension over US warnings about the global recovery.
The United States has expressed concern about the speed at which European nations, particularly Germany, are withdrawing state spending put in place after global financial crisis and economic downturn.
US Treasury Secretary Tim Geithner said: "Our job is to make sure we're all sitting there together to focus on this challenge of growth and confidence because growth and confidence are paramount."
Geithner played down America's differences with Europe telling the BBC the two sides "have much more in common than we have differences."
He said the summit offered US leaders "the chance to sit together and look at whether we've got a broad strategy across the country that's going to strengthen this recovery."
Europe "can make a choice to put in place the reforms and policies that will provide the possibility of stronger growth rates in the future," he said, as thousands of officials, journalists and activists descended on eastern Ontario province.

Wednesday, June 23, 2010

PoliticsAustralia: Aussie party shifts to new Prime Minister from Rudd to Gillard

Australia's governing party replaces Prime Minister, moving its number two into the leading position, Julia Gillard. In response the stockmarket edged upwards, but the flush-out issue is not resolved:  the govt's planned mining tax.

MARKET PULSE

June 23, 2010, 8:43 p.m. EDT · Recommend (1) · 

Australian shares gain after Gillard named PM

AlertEmailPrintShareBy Michael Kitchen
LOS ANGELES (MarketWatch) -- Australian shares moved higher in early Thursday trade, with resource shares higher after a change in the nation's leadership. The benchmark S&P/ASX 200 rose 0.5% to 4,510.4, with mining major BHP Billiton Ltd.(AU:BHP 39.80+0.66+1.69%) (BHP 70.00+0.39+0.56%) up 2.1%, Rio Tinto Ltd.(AU:RIO 71.95+1.41+1.10%) (RTP 52.19+1.14+2.23%) rising 2.4%, and Fortescue Metals Group Ltd. (AU:FMG 4.54+0.11+2.48%) (FSUMF 3.85-0.05-1.28%) gaining 3.6%. The gains came as Prime Minister Kevin Rudd resigned in favor of his deputy, Julia Gillard. Questions remain over whether Gillard will change tack on Rudd's controversial mining-tax plan. Airlines also rose as crude-oil futures eased, with Qantas Airways Ltd. (AU:QAN 2.38+0.03+1.28%) (QUBSF 1.95-0.15-7.14%) up 0.9%, and though Virgin Blue Holdings Ltd. (AU:VBA 0.31+0.01+1.64%)(VBHLF 0.27+0.04+15.22%) gave up opening gains to trade flat.
-- EconoMix

PoliticsUSA: Military: Prez Obama fires Gen McChrystal, hires Gen Petraeus

General Stanley McChrystal, the on-the-ground commander of American troops in Afghanistan, an enemy of former Gen now Ambassador to Afghan govt Karl Eikenberry, has had his resignation accepted by President Barak Obama.

McChrystal will continue as a General.  He has complained in the past that he had felt betrayed recently by the mentioned Eikenbarry, American Ambassador to Afghanistan.   The Afghani President, Hamid Karzai wanted McChrystal to stay on, while the Afghan Prez went up against Eikenberry to duke it out [publically] on war policy,  "Afghanistan loves General McChrystal. Eikenberry? Not so much," says Foreign Policy (requires Passport).

Los Angeles Times:
McChrystal fired: Obama fires General McChrystal and appoints General Petraeus

Associated Press via Yahoo! News:
McChrystal out; Petraeus picked for Afghanistan

-- Politicarp

Monday, June 21, 2010

EconomicsChina: Currency: trade of the Yuan against other countries, cut-rates from 6.8275 to 6.7980 (a drop of .0295)




If my calculations are correct, there's a difference of 0.0295 between Monday's rate of exchange and Tuesday's.   How many of the Chinese govt's Yuan will you get --


for 1 American Dollar?

As the Market Pulse email text (the same online) reproduced below for semiotic analysis (and for this economics analysis as well) woud indicate, the USA has to take up the global slack and lag. Altho China has certainly lowered the cost of its currency in the last day, how evenly has the Peoples' Gov't conducted its price lowering, country by country?  China grants other countries better prices on the yuan in exchange for a basic unit of a given country's currency (euros, pounds, francs, deutsche marks, yen, rubles, etc.), better prices than it grants the USA dollar, even tho China holds scads of USA bonds (and those of many other countries too, three, four ... ).   The rate of exchange between China and the USA has been notorious for its one-sided favourablity to China.  This hurts America's balance of trade, a kind of further deficit each year --

Read more ...

PoliticsUSA: Repulcn Prty South: A remarkable conservative aspires to represent South Carolina's 1st Congrssnl district



Tim Scott adds drama to the candidates contesting in election primaries in the deep-South's 1st Congressional District, USA House of Representatives, South Carolina.  If Mr. Scott wins the Republican primary, he will become the official candidate, thus qualifying to go up against whoever emerges as the candidate of the Democratic Party presently in its own parallel primary.  Actually, we shoud call the Republican contender already "Representative," because he's been serving already in South Carolina's state House of Representatives.  He has experience.  Rep. Tim Rice.


See and hear about Tim Rice's dramatic campaign on the video, and read David Weigel's Right Now column in Washington Post,  Right Now - South Carolina: The rise of Tim Scott (June 21,2k3) Both are h+ly recommended by Yours Truly.

-- Politicarp