• New IMF chief speaks out over US debt ceiling • Turbulence could ‘easily resurface’ in eurozone • US should not raise taxes or cut spending too soon The new head of the International Monetary Fund (IMF), Christine Lagarde , warned policymakers in Europe and America on Tuesday that failure to get to grips with their debt crises would lead to fresh turmoil in the global economy. Speaking in New York, the former French finance minister said that turbulence could “easily resurface” in the eurozone despite the positive response in the financial markets to last week’s bailout package . Lagarde also made it clear to bickering Democrats and Republicans in Washington that there would be knock-on effects for the rest of the global economy if there was no agreement on raising the US debt ceiling . “I’m hopeful that the political courage shown by European leaders will soon be followed by bold fiscal action in the US,” Lagarde said. “On the debt ceiling, the clock is ticking, and clearly the issue needs to be resolved immediately. Indeed, an adverse fiscal shock in the United States could have serious spillovers on the rest of the world. But more fundamentally, a credible fiscal adjustment plan is needed sooner rather than later.” Noting that the financial and economic crisis of 2008-09 had left “deep and long-lasting scars”, the IMF managing director said America should be careful not to raise taxes or cut spending too quickly. “The United States could be facing another jobless recovery. Again, that’s why we’ve advised against fiscal consolidation that is unduly hasty – even as we stress the importance of getting a fiscal consolidation plan agreed soon. We’ve also recommended active labour market policies to stem the rise in structural unemployment, and measures to ease adjustment in the housing market (for example, mortgage relief).” Economists at the Fund have estimated that a 1% cut in the budget deficit lowers growth by half a percentage point over two years. “This is why measures that are legislated now – but only reduce deficits in the future, when the recovery is more robust – would be particularly helpful,” Lagarde said. “But there is good news too: over the longer term, debt reduction can actually raise output by bringing down real interest rates and making room for tax cuts.” She added that the fiscal problems affecting countries on the periphery of the eurozone had “revealed the risks posed by an incomplete economic and monetary union. As a result, the euro area as a whole is experiencing difficulties. Even the tough fiscal and structural measures adopted by the affected countries have not convinced markets that a lasting solution is in place. “The agreement shows that European leaders believe in the eurozone, and will do what it takes to secure its destiny. It has been welcomed by financial markets, as reflected in the stronger euro and lower peripheral bond spreads. But turbulence could easily resurface. For this reason, it is essential that the summit’s commitments should be implemented quickly.” Lagarde also warned of the dangers of social instability, which contributed to the political upheaval in the Middle East and North Africa. “Social problems are of major concern to advanced economies too,” she said. “The young in particular are having a hard time finding work – with potentially lifelong implications in terms of employability and income. At the same time, the older generations are fighting to protect their health and pension benefits. Combine the two, and we may face a ‘clash of generations’, to borrow a term coined by the scholar David Rothkopf . This is why focusing on the right kind of growth is so important.” Global economy IMF Christine Lagarde Financial crisis Global recession European debt crisis US economy Larry Elliott guardian.co.uk
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Lawyer of man who confessed to Norway killings says client claims he is part of international network and may be insane The lawyer defending Anders Behring Breivik, the suspect behind Norway’s terror attacks, said on Tuesday he had concluded his client was most likely “insane” and he was baffled that he had asked him to represent him. Geir Lippestad, a member of the Labour party whose youth wing (AUF) Breivik targeted, killing more than 60 during a massacre on Utøya island, said he would cease representing him if the suspect refused to agree to psychological tests. Describing Brievik as a “very cold” person, Lippestad added: “This whole case has indicated that he is insane.” He said defending the man who had confessed to carrying out the attacks was a job that had to be done to preserve the integrity of the Norwegian legal system, but did not understand why the killer had chosen him. Speaking to reporters, Lippestad also said Breivik had shared more details on his connections to far-right cells including a number outside the country. The focus continues to intensify on links between UK far-right groups and Brievik with London, the city where the suspect launched his organisation to “save Europe from Muslim takeover”. Lipestad added: “He talks about two cells in Norway, but several cells abroad.” Noregian police sources, however, have cast doubt on such claims. It was also established that Monday’s court appearance was closed to the public and media over police concerns Breivik would attempt to send signals to other cells. Meanwhile, Norway’s justice minister, Knut Storberget, has attempted to quell criticism of the police operation following the attacks, praising their work as “fantastic”. Within hours, Breivik’s lawyer had revealed that the suspect was surprised that he wasn’t stopped earlier during the two attacks. As prosecutors indicated they were exploring the possibility of charging Breivik with crimes against humanity – which carries a sentence of 30 years compared to the current maximum of 21 – the inquest into a series of failings dominated much of the debate in Norway. Among a set of unanswered concerns are why the Norwegian intelligence arm placed Breivik on a watch list after buying fertiliser in Poland that may have been used to build the Oslo bomb but then took no action. Such was the device’s ferocity that Storberget revealed that employees from his department remain missing in the ruins of the capital’s government building. Further north at the scene of Friday’s massacre, police said that 50 officers continue to comb the nearby waters for victims. With the current death toll likely to grow, an official list confirming the majority of identities could be released by police shortly. Police say they have been averaging 20 postmortems a day since the attacks. Brievik’s lawyer said his client was neither aware of the number he had killed or the strength of public revulsion following the atrocities. Lippestad said that the suspect had asked him how many he had killed. The lawyer also added that the 32-year-old hated anyone who did not share extremist views. As Norway waits for confirmation of those who died, attention continues to focus upon how Breivik, despite saying he had been planning the attacks since 2009, managed to evade Norway’s security agencies and carry out the twin attacks. It has emerged that as long ago as 2006 security concerns were raised that the main street running through the centre of Norway’s government district, where the device was detonated, should be closed. The Utøya massacre has also exposed the country’s lack of emergency air response, forcing officers to drive to the island as the killings went on. The one helicopter available to Norwegian special forces was 42 miles away and, according to local reports, could not be flown in time due to Norway’s “holiday season”. The setbacks meant armed teams took more than an hour to reach Utøya island. Norwegian media have also carried claims that ambulances on the way to the island to help the wounded were held up as police attempted to secure the area. Amid a flurry of fresh claims that pointed to links between the suspect and the English Defence League, further details on the pan-European nature of the attacks emerged with reports that Breivik travelled to Karlstad in Sweden, to pick up 150kg of aluminium to apparently give the Oslo device more power. On Tuesday, a Danish businessman revealed that he had discussed methods of creating explosions with Breivik. In an interview with the Danish newspaper Ekstra Bladet, Glenn Jensen said he had met the gunman several times over the past five or six years. Jensen, who ran a construction company and had legitimate knowledge of demolitions, said the conversation did not seem abnormal because “men and boys are interested in gunpowder and bullets and fast cars”. Further details on how Breivik may have funded the attacks have also surfaced. One local claim suggested Breivik was initially intent on raising money on the stock market to establish a European anti-Islam group, before later helping fund the attacks by applying for 25 different credit cards. Breivik has admitted to carrying out last Friday’s attacks but has pleaded not guilty, explaining to Oslo prosecutors that he “is happy” with the death toll. His one regret, it seems, is not being able to kill the former prime minister Gro Harlem Brundtland. The former PM gave a talk to young people gathered on Utøya Island but had left before Breivik arrived on a ferry, dressed as a policeman. Brundtland has dismissed being one of Breivik’s principal targets as unimportant. She said: “The image of this tragedy for me is the wonderful young people I spoke to in the hall [on Utøya].” She said she had met seven young girls, all planning to stand for the first time in elections in autumn. “They asked for advice and I told them to be themselves,” she said. “Now one of those girls has disappeared.” On Monday, Brundtland led thousands on a candleliit vigil through the centre of Oslo as the city expressed a compelling defiance that it would not be cowed by extremism. Urged to carry a rose to express their solidarity, by midnight the city was smothered in piles of the flowers with car windscreens, including police vans, covered in wreaths. Anders Behring Breivik Norway Europe The far right Mark Townsend Helen Pidd guardian.co.uk
Continue reading …Chris Matthews Slams Sen. Mike Lee for Demanding Constitution be Rewritten to Pass Debt Limit
July 26, 2011 No Comment
Click here to view this media Chris Matthews did a good job of making Utah Sen. Mike Lee look like the obstructionist he is on Hardball tonight. Here’s more from Think Progress — Mike Lee: I Want America’s ‘House To Come Down’ Unless Congress Votes To Rewrite Constitution : In an interview on MSNBC’s Hardball this evening, tenther Sen. Mike Lee (R-UT) admitted that he is using the threat of a catastrophic default to extort the nation into rewriting the Constitution to force a permanent era of conservative governance : CHRIS MATTHEWS: How many days do you think we have, on the outside, to get this debt ceiling through before we have a problem? How many days? LEE: I don’t know, maybe ten days. MATTHEWS: Okay, in ten days you want to change the United States Constitution by two-thirds vote in both houses? That’s what you’re demanding. LEE: Yes. If possible we can’t change the Constitution just in Congress but we can submit it to the states. Let the states fight it out. MATTHEWS: And you think you’re being reasonable by saying you want a two-thirds vote in the House, which is Republican, and in the Senate which is Democrat. You want the Democratic Senate, by a two-thirds vote, to pass a constitutional amendment or you want the house to come down? LEE: Yes. That’s exactly what I’m saying and I’ve been saying this for six months. Go read the rest for more details on Lee’s hostage taking. Someone wake me up when this debt ceiling kabuki is over. I can barely stand watching any of it any more.
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Randy Vickers’s resignation follows string of online assaults on Senate, CIA, FBI and other government agencies The head of the US body responsible for combating cyber-attacks has resigned unexpectedly following a string of online assaults on the CIA and other government agencies. Randy Vickers, the director of the US computer emergency readiness team (CERT), stepped down on Friday, according to a Department of Homeland Security email obtained by the Reuters news agency . According to Reuters, the email did not disclose any reason for Vickers’s resignation. The Department of Homeland Security declined to comment. Vickers, director of CERT since 2009, will be temporarily replaced by deputy director Lee Rock. Vickers’s resignation follows a number of online attacks on government websites including the Senate, the CIA and the FBI. William Lynn, the US deputy defence secretary, revealed earlier this month that a foreign intelligence service had stolen up to 24,000 computer files from a Pentagon supplier in March – one of the largest successful cyber-attacks on a US government agency. The hacker collectives Anonymous and LulzSec targeted state websites after US intelligence agencies vowed to clamp down on the groups, resulting in a string of arrests worldwide. Sixteen alleged members of the Anonymous collective were arrested last week, as part of the investigation. Two British teenagers, 19-year-old Ryan Cleary and an unnamed 16-year-old, have been arrested in the past month accused of involvement in the attacks. The unnamed south London teenager – thought to go by the online alias “Tflow” – was released on bail on Friday following his arrest on Tuesday. Washington-based CERT is responsible for the protection of US government computer networks, including those of the Pentagon and Senate. Hacking Data and computer security Computing US national security United States Josh Halliday guardian.co.uk
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‘Bidder No 70′, who won bogus bids for $1.8m of drilling rights, could face up to 10 years in prison An activist who disrupted a Bush administration auction for the oil and gas industry – bidding $1.8m (£1.1m) he did not have for the right to drill on remote areas of Utah – is due to be sentenced on Tuesday. As Bidder No 70, Tim DeChristopher put in bogus bids and won drilling rights to 14 parcels of land at the auction, seen at the time as a last scramble by the Bush administration to open up wilderness lands to oil and gas extraction. The action made DeChristopher a hero to some environmentalists, but he could face up to 10 years in prison and a $750,000 fine following his conviction last March of defrauding the government. “It is all up the judge. He can pretty much do what he wants,” DeChristopher, an economics student, said in a telephone interview. But he added: “I do think I will serve some time in prison. That is what I think will be the next chapter in my life.” Sentencing was scheduled for 3pm Utah time, or 10pm UK time on Tuesday. The severity of the sentence, in all likelihood, will be determined by negotiations between DeChristopher’s legal team and the prosecution on the extent of financial damage caused by his bogus bidding. The prosecution is pushing for four-and-a-half-year term, arguing that an example needs to be made of DeChristopher as a deterrent to other activists. DeChristopher’s legal team is urging a suspended sentence or probation. DeChristopher said he did not have a clear plan when he turned up at the Bush administration’s oil and gas leasing auction in Salt Lake City in December 2008. “At the time I went in with a very direct action kind of mindset thinking that if I can cause enough delay, stop this action and keep oil in the ground, then that would be worth it,” he said. He had come straight from writing one of his finals, unshaven and in an old down jacket. “I certainly didn’t look like anyone who was there,” he said. “I didn’t pretent to be an oil executive or anything.” Officials from the federal Bureau of Land Management asked if he wanted to bid. DeChristopher said yes, still thinking at that point that he just wanted to shout something or cause a disruption. But by the time the auction was over, DeChristopher had driven up prices on some parcels and made winning bids on 14 pieces of land – some of it near national parks. He knew he had no money to pay for it. The Obama administration later cancelled most of the sales, because of doubts about Bush’s leasing plan. However, the judge, Dee Benson, refused to allow DeChristopher’s lawyers to argue that the auction had been cancelled. DeChristopher, meanwhile, began acquiring a following on campuses and among an older generation of activists. He also founded a civil disobedience group, Peaceful Uprising . “Tim is a hero to me,” Peter Yarrow, the folk singer, and member of Peter, Paul and Mary, wrote in an article in the Los Angeles Times on Tuesday that likened DeChristopher to the leaders of the civil rights movement. “Throughout American history, acts of civil disobedience have led to change. Think about the Underground Railroad that helped escaped slaves to freedom, or about the courageous actions of people like Rosa Parks, who refused to stay in the back of the bus simply because of their skin color. Without this kind of defiance of unjust laws, our country would likely still be denying people of colour basic freedoms.” Activism Protest Oil Energy Fossil fuels Oil Commodities Oil and gas companies Energy industry Gas Gas Suzanne Goldenberg guardian.co.uk
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Trinity Mirror move comes as share price falls amid allegations that phone hacking was not confined to News of the World Trinity Mirror has begun a review of its editorial controls and procedures amid allegations that phone hacking was not confined to the News of the World. The six-week review is being led by Trinity Mirror’s group legal director Paul Vickers and will include all of the group’s national and regional newspapers, including the Daily Mirror, Sunday Mirror, the People and the Daily Record. Trinity Mirror’s share price fell 9.8% on Monday amid investor concerns that the hacking scandal was not restricted to News International, following allegations about its papers over the weekend. Its shares were down another 1.4% by 10am on Tuesday, to 42.9p. Former Daily Mirror reporter James Hipwell reiterated his earlier claim that hacking was widespread at other newspapers, including the Mirror . A separate report on BBC2′s Newsnight alleged the use of phone hacking and private detectives was widespread at the Sunday Mirror . Trinity Mirror described both sets of allegations as “unsubstantiated”, saying its journalists “work within the criminal law and the Press Complaints Commission code of conduct”. A company spokesman said today: “We can confirm that we’re conducting a review of editorial controls and procedures.” Sources at the company indicated it was a “review rather than an investigation” into the company’s editorial controls and procedures and was a response to general concern about newspaper practices rather than to specific phone-hacking allegations. Rival newspaper group, the Daily Mail & General Trust, on Tuesday ruled out an internal review into phone hacking. The DMGT chief executive, Martin Morgan, reiterated comments by Daily Mail editor Paul Dacre last week that the company was not involved in any hacking. “I have received assurances that we have not published stories based on hacked messages or sources obtained unlawfully,” said Morgan . “We have strong processes and procedures right across the group.” •
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Higher oil prices, driven up in the period by political unrest in the Middle East and North Africa, helped offset the costs of the Deepwater Horizon disaster Oil giant BP said it had benefited from higher oil prices as it reported quarterly profits of $5.3bn (£3.2bn). The British firm made a loss of £16.9bn in the same period a year ago – but this was in the aftermath of the Gulf of Mexico oil spill disaster . The group said production was 11% lower in the period following suspension of drilling in the Gulf of Mexico and $25bn of asset sales. But this was offset by higher oil prices, driven up in the period by political unrest in the Middle East and North Africa, as well as higher refining margins – the difference between the value of crude oil and the products it is used for. The Gulf of Mexico clean-up continued in the quarter – with £6.8bn now paid out in claims and in government payments to fund economic and environmental restoration. Oil prices began to climb early this year as political turmoil spread from Tunisia through Egypt and on to Libya. Supplies were constricted by civil war in Libya, which pushed prices even higher. BP said the average cost of Brent crude in the period was $117.04 a barrel – a 50% increase compared with $78.24 in the same period last year. The company also said it was benefiting from improved refining margins – up to 13% from 11%. The improved margins come as the cost of petrol at the pumps hit 135.6p a litre in June, according to the Office for National Statistics. BP BP oil spill United States Oil guardian.co.uk
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Higher oil prices, driven up in the period by political unrest in the Middle East and North Africa, helped offset the costs of the Deepwater Horizon disaster Oil giant BP said it had benefited from higher oil prices as it reported quarterly profits of $5.3bn (£3.2bn). The British firm made a loss of £16.9bn in the same period a year ago – but this was in the aftermath of the Gulf of Mexico oil spill disaster . The group said production was 11% lower in the period following suspension of drilling in the Gulf of Mexico and $25bn of asset sales. But this was offset by higher oil prices, driven up in the period by political unrest in the Middle East and North Africa, as well as higher refining margins – the difference between the value of crude oil and the products it is used for. The Gulf of Mexico clean-up continued in the quarter – with £6.8bn now paid out in claims and in government payments to fund economic and environmental restoration. Oil prices began to climb early this year as political turmoil spread from Tunisia through Egypt and on to Libya. Supplies were constricted by civil war in Libya, which pushed prices even higher. BP said the average cost of Brent crude in the period was $117.04 a barrel – a 50% increase compared with $78.24 in the same period last year. The company also said it was benefiting from improved refining margins – up to 13% from 11%. The improved margins come as the cost of petrol at the pumps hit 135.6p a litre in June, according to the Office for National Statistics. BP BP oil spill United States Oil guardian.co.uk
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Detectives questioning five men in connection with the murder of a police officer in County Tyrone in April Five men have been arrested by detectives investigating the murder of Constable Ronan Kerr in Northern Ireland. The new police recruit was killed by an under-car booby-trap bomb that exploded outside his house in Omagh, County Tyrone, on 2 April. Kerr was killed by dissident republicans opposed to the peace process in Northern Ireland. He was one of a growing number of Catholic police officers joining the Police Service of Northern Ireland. It was one of the most serious incidents attributed to dissidents, who have also attacked police station and other security force targets. Police said searches linked to the arrests were under way on Tuesday in Coalisland, Toome, Bellaghy and Ballyronan, County Tyrone. Northern Ireland guardian.co.uk
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Click here to view this media Libertarian Presidential hopeful Gary Johnson evidently thinks democracy, the Constitution and our republic should be replaced with market wisdom alone. It’s interviews like this that make me think back to the good old days when John Schmitz ran for President and was widely repudiated by all but his very tiny base. Now the John Schmitz types have overrun democracies everywhere, and then there’s Gary Johnson, who thinks the markets should do that. JOHNSON: Well, we’ve been talking about this for years, that this is a downgrade that should happen and will happen since statistics — the Federal Reserve was buying up to 70% of our debt, so borrowing is one thing, printing money is another thing and we’re printing money! That’s something people need to recognize and when it goes to 100%, printing money to actually buy up our own debt, that’s the monetary collapse. CAVUTO: The argument for doing something like this is, you know, the genie out of the bottle argument, obviously, that it’s hard to put that back in…[unintelligible]…it’s that we’ll be forced to be disciplined. Do you buy that? JOHNSON: Well, force — let’s force it now. Let’s force it now. Let’s not raise the debt ceiling to deal with this, as difficult as it’s going to be and I don’t want to downplay just how difficult it’s going to be. CAVUTO: Even if it means raising taxes as part of the deal to force it? JOHNSON: I don’t think it’s a matter of raising taxes. I would not advocate raising taxes. I’m advocating on the side of the fair tax which would eliminate business to business tax, I’d eliminate the corporate tax. I think that reboots the computer, reboots the American economy for decades of real growth. Back to fair tax. Eliminate the income tax, eliminate the IRS, have one federal consumption tax, simplify, fair, encourage savings. To summarize, what Johnson thinks is that we should suffer a default to “force discipline” while eliminating all taxes on corporations and individuals and instituting some kind of national sales tax which is the most regressive tax there is. Ah, liberty. What bothers me most about this guy is that he’s spouting the most radical talking points of Republicans’ plans, talking points that more or less knocked Huckabee out of the running in 2008, and yet he’s treated with utmost credibility by the likes of Neil Cavuto and Fox News, as well as pundits writing about how “interesting” he is . John Schmitz was interesting too. So was Lyndon LaRouche. But we didn’t give them a mainstream platform to pretend like they were actually serious.
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