Those who are hoping for a more optimistic report of the global economic future should probably not read on. According to a report released by the Union Bank of Switzerland entitled “Euro Break Up-The Consequences,” the death of the euro is inevitable and the long-term effects of such an event will potentially include civil war, the collapse of international trade and sovereign default.
The global economy is facing a meltdown, according to World Bank President Robert Zoellick. “We are moving into a dangerous period,” he told Bloomberg Television at a Singapore interview. The chances of an American recession are made increasingly likely by the danger of an economic implosion in the eurozone.
Officials in Scotland have decided it is fit and proper to take obese children away from their parents. In particular, parents of four obese children had received warnings from officials regarding the weight of their children. As those warnings were not heeded, those officials proceeded to remove the children from their parent’s home.
In banking, few values count more than consistency and integrity. The sovereign debt crisis in Europe, however, appears to have watered down those values in the case of some banks. The International Accounting Standards Board has stated that some European banks used the value provided by the Greek government in determining how much value Greek bonds should be counted in the assets of the bank. That would mean the bonds would be worth about 21% less than than the original valuation.
The debt crises of European Union member-states have reached critical mass. Three of the "PIIGS" nations — Portugal, Ireland, and Greece — and likely the other two — Italy and Spain — are simply too deeply in debt to pay off the principal and interest on national government bonds without massive help from other European nations, specifically Germany. And Germans are increasingly upset at how their government and that of France are attempting to solve the catastrophe.
The European Union has threatened Sweden with legal action unless it rescinds its first issuance of wolf-hunting licenses in 45 years. Swedish Minister for the Environment Andreas Carlgren announced that his country has no wish to engage in long legal proceedings in Brussels, the de facto capital of the European Union, which would be the next step if the EU member-state failed to comply.
The bad news from the European Union is growing almost daily. Germany, the largest economy in Europe, had almost no economic growth at all in the last quarter The entire 17-nation European Union grew at the miniscule rate of .2 percent from the prior quarter. The prior quarter’s eurozone economic growth had been .8 percent, larger than last quarter but still far short of what is required to create confidence that the sovereign debt crisis can actually be managed. That represents the slowest economic growth since late 2009. The French economy also stalled during the quarter and the Italian economy grew only .3 percent.
The Italian government revisited its plans for handling the nation’s gaping public debt problem. On Friday, Prime Minister Silvio Berlusconi (left) said that tax increases and spending cuts would both be in the new austerity plan. The tax increases included a “special levy” on income above €90,000 per year as well as tax increases on income from financial investments. More specifically, there would be a surcharge of 5 percent on incomes above €90,000 and a 10-percent surcharge on incomes above €150,000. The tax rate on financial income would increase from the current level of 12.5 percent to 20 percent. The government also pledged to crack down on tax evasion.
If you thought the Central Intelligence Agency hatched a few wacky plots to get rid of Cuban communist dictator Fidel Castro, such as planting explosive sea shells on the sea shore, the boys at Langley had nothing on British Intelligence during World War II, a new book has disclosed.
British Prime Minister David Cameron (left) is reportedly considering the drastic step of “pre-crime” blocking of social media sites if the violent riots in his country continue. He contends that such a move would permit authorities more time to “catch up” with arrests of suspects shown rioting on surveillance cameras. The communication platforms under particular scrutiny are Twitter, Facebook, and Blackberry Instant Messenger.
The German government is considering banning the National Democratic Party (known as NPD, for "National Party of Deutschland," a political movement defined by the punditry as "far right." Gerhard Schröeder, the Social Democrat who preceded Angela Merkel as Chancellor of Germany, failed in his attempt to ban the small party in 2003.