Saturday, October 25, 2008

Eeyore's News and View

Here is an interesting article, hope you like it about our Sovereignty 
We Know Where You Are, Where You've Been, and Where You're Going

First, it was radar guns. Next came red light cameras, which took a photo both of your face and your license plate numbers. And now, surveillance vendors are promoting an American "homeland security" system that would track you, wherever you drive.
If you think this technology is a pipe dream, think again. It exists now, and will soon arrive in the United States.
You can thank the United Kingdom for pioneering this system. When fully implemented next year, the U.K.'s Automatic Number Plate Recognition (ANPR) system will track nearly 500,000 vehicles daily through police cameras and CCTV systems. As you drive between major cities and (especially) into a major metropolitan area, your license plate will be scanned and your identity matched against various U.K. databases.
Should you be driving a "vehicle of interest," it will be easy for police to detain and possibly arrest you. And since the results will be archived for five years, investigators can subsequently trawl the database of billions of vehicle journeys for whatever purposes are deemed necessary.
Such a system already exists in London, where it was installed to reduce traffic congestion. Now, proponents justify it as a measure to fight terrorism, child pornography, and narcotics trafficking.
In the United States, leading photo enforcement providers are promoting a similar program as a way for police to solve missing persons cases and reclaim stolen cars. But behind the scenes, they're advocating a much more ambitious network with capabilities that would equal or even exceed those being developed in the United Kingdom.
The potential for abuse is obvious. And you don't need to look far to find it. In Canada, a police sergeant in Edmonton, Alberta decided to track the whereabouts of a journalist who criticized the city's photo radar operation.
Police followed the critic to a local bar, hoping to arrest him for driving under the influence of alcohol. Unfortunately for police, the journalist took a taxi home. Shortly thereafter, the plan became public knowledge after someone inside the police department leaked tapes of radio traffic to the press.
What politician might be silenced after the license numbers of both he and an alleged mistress are found at the same hotel? What civil libertarian will feel compelled to stay at home rather than risk harassment by police if he drives his vehicle to a political rally? The prospects for continued abuses are real, and growing rapidly.
One thing's for sure. Big Brother has literally taken to the roads. If you want transportation privacy in this brave new world, buy a bicycle - or a good pair of hiking boots.
MARK NESTMANN, Privacy Expert & President of The Nestmann Group
http://www.nestmann.com/
 Darpa Wants to See Inside Your House  (for the short article you can read it at)
http://blog.wired.com/defense/2008/10/darpa-see-throu.html
This is part two of a three part series on Surviving in the city 

THE FAILURE OF THE POWER GRID
   Nothing is as suddenly obvious nor has such a gigantic psychological
impact as the failure of the power grid. When the electricity stops, almost
everybody knows it at the same instant (unless it happens at night).
  Naturally, during the first few hours of the power failure, if it occurs,
people will assume it's a temporary situation. Maybe a tree fell on some
power lines, or perhaps a transformer blew up somewhere nearby. They'll sit
tight and wait for the power to come back on.
  What if it doesn't? Then the city faces a severe problem. Without power,
obviously, everything shuts down. Within hours, the looting begins in the
more crime-ridden cities (we saw this in New York a few decades ago.). The
longer the power stays off, the worse the social disorder.
  The loss of power will bring the entire city to a halt. While vehicles may
get around for a few more days (using whatever fuel they have left),
businesses obviously won't be operating. Houses that depend on electricity
for heat will quickly reach Winter temperatures, freezing many occupants to
death. While those that depend on electricity for Air Conditioning will just
as quickly reach Summer temperatures, resulting in death from heat stroke.
Hospitals and police stations may have generators on hand, with a few days
worth of fuel, but in short order, that will be depleted, too.
  But the water treatment plant will almost certainly be off-line without
power, causing all the events mentioned in the water section, above. Let's
face it, the power is the worst thing to be without in the city. If you have
power, you can survive a food shortage, perhaps even a short water shortage.
But without power, all bets are off. If you have a "bug-out" vehicle stocked
and ready to go (see below), this might be the time to bail.
  SOLUTIONS IN THE CITY
  Okay, so you're stuck in the city. You've made the decision to stay. You'
ve read the problems above, you believe they make sense, and you're
intelligently frightened. What now? You really have two strategies. You can:
  * Stay and defend your house
  * Bug out (leave the city and head for the hills)
 Important! This is not an either/or situation. You can begin by staying in
your house and assessing the situation. You'll want to have a "bug-out"
vehicle stocked and ready, just in case, if you can afford one, but you may
never actually choose to bug out. You'll have to be the ultimate judge of
this. Just remember that when you bug out, you face major risks and
disadvantages. Among these:
  1. You're severely limited in how much you can carry -
  2. You have limited range due to fuel -
  3. You expose yourself to social chaos, roadblocks, random violence,
etc. -
  4. Your house will certainly be looted while you're gone -
  5. You run the risk of mechanical breakdowns of your vehicle -
  6. You must have a place to go that you know is in better shape than where
you currently are.
  In general, unless you have a specific, known safe place as your final
destination, I don't advise people to bug out. Just "heading for the hills"
is a very poor plan. You might not make it. But heading for Grandma's house
or some known, safe place could be a very good plan indeed, depending on
whether Grandma is ready, willing and able to accept you!
  For these reasons (and more), staying and defending your house is
sometimes the only reasonable course of action, even if it seems dangerous.
For the most part, looters and people looking for food are going to have
plenty of easy victims, so if you show a little willingness to use force to
defend your property, you'll likely send people on to the next house.
  That is, until the next house is already empty and you appear to be the
last house on the block with any food and water left. If you're in a bad
enough area, your neighbors may "gang up" on you and demand your supplies or
your life. This is truly a worst-case scenario, and unless you literally
have a house full of battle rifles and people trained to use them (and the
willingness to shoot your neighbors), you're sunk. This is why the best
situation by far is to keep your neighbors informed and help them get
prepared. Then you (both your member and non-member neighbors) can act as a
group, defending your neighborhood and sharing the supplies you have with
anyone willing to help defend you.
  When you have this kind of situation going, your neighbors realize you are
their lifeline. You supply them with food and water, and they will help
support you because they are, in effect, supporting their own lives. The
best situation is when your neighbors and other ward members have their own
food and water supplies. That way, they aren't depleting yours, and they
have a strong motivation for getting together with you defend your
neighborhood. (More on this below.)
  STORING (AND HIDING) YOUR FOOD
  Storing food is just as important in the city as in the country, but
hiding it is far more important. That's because in the worst areas,
marauders will be going from house to house, demanding your food or your
life. If you're dumb enough to put everything you own in the obvious places,
you might as well not buy it in the first place. They will find it. To count
on having any amount of food left over after the marauders break in, you'll
need to hide your food.
  One alternative is to plan on defending your home with force. If you have
enough gun-wise people in the house, and enough firearms and ammo, you can
probably pull this off. But most of us aren't nearly as experience with
firearms as the gang members. A better alternative might be to plan on
bringing you supplies to your ward/stake building where all of the Saints
can both pool and defend their resources. This of course will depend greatly
on your local Bishop and Stake President. (If you are a Mormon)
  Back to hiding: the best way to hide your food is to bury it. You'll need
airtight containers, long-term food that won't rot and you'll need to plan
ahead. Bury your food at night so nobody will notice, and make sure you don'
t leave the map on the refrigerator door! (Better to memorize it!) Try to
get the ground to look normal after you're all finished. You'll want to bury
your food as early as possible because it gives the grass time to regroup
over the spot. If you're in an area that snows, you'll have a great
concealment blanket! Most food marauders won't go to the trouble to dig up
food, especially if you insist you don't have any.
  Best plan: Have some smaller amount of food stashed around the house,
letting them find something. Better to give them something and send them on
their way. The art of hiding your food is an ancient one. You've got to get
creative. Use the walls, the floors, and the structure of the house.
  If hiding your food is simply not an available alternative, then try not
to advertise it. Keep it put away in your house or garage in as discreet a
manner as possible. Don't make a point of telling people that you have a
years supply (or more). Word gets around fast that Bro. Jones has a ton of
food in his garage. Boxes of food fit nicely under beds, behind furniture,
in the attic, etc.. Be Creative!!
  To sum up the food storage, you really have three strategies here:
  * Store it all in your house and plan on defending it by force.
  * Bury it in your yard in case you get overrun by looters.
  * Store part of it in your house, and hide the bulk of it.
  * Relocate all of it as soon as you recognize a major disaster is in
progress
  One of the best ways to store food for burying, although it will only last
2-3 years in high-humidity areas, is to purchase 55-gallon good-grade steel
drums. You can get them from: Memphis Drum Service, 3299 Tulane, Memphis,
Tennessee 38116 (901) 396-6484; (800) 960-3786) The drums are only $16.50,
but shipping them is around $30 each. Once you obtain the drums, dump in
your grains or other food items. If you purchase bags of food from Walton
Feed, this is the perfect way to store it. Don't leave it in the bags unless
you're actively eating it. [Note: Plastic barrels do not rust.]
  Then sprinkle some diatomaceous earth into the drum. You'll need about two
cups to treat a 55-gallon drum, and it must be mixed in well. Diatomaceous
earth is made from ground up sea shells, and it kills bugs by getting into
their joints. You can get some from: Perma-Guard, Inc. 115 Rio Bravo S. E.
Albuquerque, New Mexico 87105 (505) 873-3061
  This diatomaceous earth is food grade, and on the bag it says, "Fossil
Shell Flour." Their prices are one pound, $4.90; 2 lb., $8.05; 5 lb., 14.70,
10 lb., $18.00; 50 lb., $24.95.   (this info is a few years old)
  Once you get these drums filled and sealed, you can then bury them in your
yard. This is actually a HUGE UNDERTAKING and is a LOT more difficult than
it sounds, since you'll need to dig to a depth of around 5 or 6 feet in
order to sufficiently bury these drums. You're likely to attract a lot of
attention unless you do it at night, and you'll definitely be removing a lot
of dirt that you'll need to find some use for. Because the drums are steel,
they will also deteriorate unless you line the outside with plastic (a good
idea) and treat the drums with some kind of protectant or oil. (Don't use
WD-40.) Even Vaseline would work well, although you would definitely need a
lot to coat a 55-gallon drum.
  When you're all done, you should have your protected grains in 55-gallon
drums, buried in your yard and protected against the humidity of the
surrounding earth. It's a big effort, but then again, the food inside may
save your life. You'll find it much more efficient to bury several barrels
at once; side by side.
  In reality it would be faster and easier to simply build a false wall in
your garage and seal up your food behind the false wall. Sure, you might
loose 2-3 feet of useable space in your garage, but the tradeoff is knowing
everything is safe and sound.
  STORING EXTRA WATER
  Water can be stored in exactly the same way, although you might want to
bury the barrel before you actually fill it with water. Make sure you treat
your storage water, rotate it or have filters on hand when you get ready to
use it.
  If you don't have a yard, or it's not practical to bury your water, you'll
have to store water inside your house. This can get very tricky because
water takes up a lot of space and it's very difficult to conceal. It's best
to get containers made for long-term storage, but in a pinch, you can use
almost any container: soda bottles, milk jugs (although it's very difficult
to rinse the milk out), and even rinsed bleach bottles (in that case, you
won't need to add bleach). But a lot of these containers will deteriorate
quickly, and they may break easily. Also, consider what happens if your
water may be subjected to freezing. Will your containers survive? Be sure to
leave enough air space to handle the expansion.
  In order to prepare yourself for the water shortage, assuming you're going
to stay in the city, stock at least six months of water at a minimum two
gallons a day per person. That's nearly 400 gallons of water if you have two
people.  (In my personal practice it is more like 3 gallons a day per adult)
  Of course, even with the best in-house preparations, you may find yourself
depleted of water supplies. In this situation, one of your best defenses is
to have a really good water filter (like the Katadyn filter) that can remove
parasites and bacteria from the water. You can also treat your water in
other ways (iodine, distillation, silver solution, bleach, etc.). Armed with
these items, you can safely use stream or river water (or even pond water)
for drinking.
  WATER WELLS
  By far, the best solution for obtaining long-term water supplies is to
drill a well. Buy the best-quality hand-pump available (cast-iron pumps
available from Lehman's) and a good cylinder. They will last a lifetime if
installed properly. With this setup, you'll have a near-unlimited supply of
water.
  The total cost of doing this, depending on where you live, ranges from
about $4000 - $6000. Is it worth it? If you've got the money, I think so.
However, many cities simply don't allow the drilling of wells, so you may
not be able to get one drilled even if you want to.
  The deeper your well, the more expensive it gets. Most well drilling
companies charge by the foot. When water is deeper, you also need a bigger
pump and a more powerful cylinder, so the costs tend to really grow the
deeper you go. If you can find water at 20', you're very lucky and it might
not cost you even $2000. If you have to go down to 200', it might cost you
$7500, and you're at the depth limit of hand-powered pumps anyway.
  HOLLY DEYO NOTE: As point of reference, the general cost of well digging
in Colorado as of March 2007, runs $20/foot. This can be a very expensive
venture if water is located deeply or worse yet, the drill hole comes up
dry. Additionally, in Colorado, you may not drill a well on your property
unless you own at least a 35-acre plot or, there is no public water supply
available. Both the cost and conditions when you may be allowed to drill can
vary throughout the U.S. (and abroad), so be sure to check before counting
on being able to do so.
  DEFENDING YOUR LIFE AND PROPERTY
  Let's talk about force. No doubt, there are plenty of nice people in this
country, and I think that in small towns and rural areas, people are going
to find ways to cooperate and get along. I also think, however, that some
cities will suffer complete social breakdown and violence will rule. If you
happen to be stuck in one of these cities, you're going to need to use force
to defend your house. The section that follows discusses what I consider to
be extreme responses to violence in the most dire situations. Hopefully, you
won't find yourself in these circumstances, but if you do, the information
below may be valuable.
  Important: Do not use your lights at night. If you are stocking
propane-powered lanterns, solar-powered flashlights, or other unusual
supplies, using them at night will announce to everyone within line of sight
that you have more than the "usual" supplies. Expect them to come knocking
in your door. At most, let a fire burn in the fireplace, but in general,
avoid drawing attention to your house.
  Defending your house is a crucial element on your stay-in-the-city plan.
Make your house your fortress, and hold drills to help other family members
practice some of the more common activities such as hiding, defending,
evacuating, etc. Some useful items for home defense include:
  * A guard dog
  * Pepper spray
  * Firearms
  * Smoke bombs (military-grade)
  * Trip wires
  Let's go over these: The guard dog is certainly a welcome addition to any
family trying to defend their house. Although he probably eats a lot of
food, the investment is worth if. Dogs also tend to sleep light, so let them
sleep right next to the food storage areas, and make sure you sleep within
earshot. If the dog barks, don't consider it an annoyance, consider it an
INTRUSION.
  Pepper spray is a great alternative to the firearm. It will incapacitate
people and certainly give them a painful experience to remember. On the
downside (potentially), it might just remind them that next time they come
back for food, they better kill you first. So understand the limitations of
pepper spray.   (Bean bag rounds and rubber bullets are also)
  Firearms are useful for obvious reasons. In the worst-case scenario, when
looting is rampant, you may have to actually shoot someone to protect
yourself or your family. If you're squeamish about pulling the trigger under
these circumstances, don't plan to stay in the city. Use the "bug out" plan
instead.
  Smoke bombs can be useful for covering a planned escape from your house.
You can purchase high-volume smoke bombs that will quickly fill up any house
with an unbreathable cloud of military-grade white smoke.
  Trip wires are great perimeter defenses. You can buy them from Cheaper
Than Dirt (they run a few hundred dollars). They will give you early warning
if someone is approaching. You can connect the tripwires to flares, shotgun
shells, light sticks or other warning devices. This way, you can have an
audible or visible alert, your choice.
  In addition to these devices, you can make significant fortification-style
improvements to your home. While none of these are very affordable, they
certainly help defend your home:
  * Replace glass windows with non-breakable Plexiglas
  * Add steel bars to the windows
  * Replace all outside door locks with heavy-duty deadbolts
  * Replace all outside doors with steel doors, preferably without windows
  * Remove bushes and other shrubs where people might hide (or replace them with thorny type bushes)
  * Black out the windows entirely to avoid light escaping at night (similar
to what residents of London did during the WWII bombing raids)
  * Build secret hiding places for food, coins, or even people
  * Create escape hatches or passageways
  * Rig pepper-spray booby traps
  These aren't as absurd as they might at first sound. Many people living in
rough cities already have steel bars covering their windows, and removing
extra bushes and shrubs is a well-known tactic for making your home a safer
place.
  LIGHT
  To light your home when there's no electricity, try the following:
  * Use LED flashlights and rechargeable solar-charged batteries. You can
buy all these items from the Real Goods catalog
  * Use propane-powered lanterns. You can find these in the camping section
of your local Wal-Mart. Be sure to purchase extra mantles and store lots of
propane.
  * Purchase quality oil lamps from Lehman's and stock up on oil. You can
also purchase cheap kerosene lamps from the Sportsman's Guide or Wal-Mart,
then simply purchase and store extra kerosene.
  * Buy extra candles.
  * Purchase lots of olive oil. Not only can you cook with it (and besides,
it's a lot healthier than corn or vegetable oil), olive oil also burns as a
clean candle fuel. You can float a wick in a jar half-full of olive oil and
light the wick. Viola, a home-made candle. Olive oil is a fantastic item for
your storage anyway because even if you purchase all the grains in the
world, you'll still need cooking oil, and you obviously can't buy powdered
cooking oil. Well-stored olive oil can last for thousands of years.
  STAYING WARM
  Did you know that people won't steal giant logs? Although they may easily
steal wood you've already chopped, most people won't have any way of
stealing logs. They're too heavy, and the vehicles won't have any gas left.
For this reason, your best bet in regards to stocking fuel for your house is
to stock up on UNCUT wood logs.
  It takes a lot of extra research to find out how to get them (took me a
few weeks of asking around), but you can find a source if you look hard
enough. Or you can usually get a permit to go out and cut your own. The
effort is worth it, because this will give you a ready-to-go source of heat
and fuel that cannot be easily stolen.
  The catch, of course, is that you'll need equipment to cut and chop the
wood. A chainsaw is REALLY nice in this way, but it requires fuel.
Fortunately, chain saws don't use much fuel, so if you have a way to store
as little as 50 gallons or so, you've got enough to power your chainsaw for
a few years (at least!). You'll need fuel stabilizers, too, which you can
buy at your local Wal-Mart. (Be sure to buy extra chains for your chainsaw,
too.)
  You'll also need splitting hardware. You can buy log splitters or just buy
an axe, a wedge, and a sledgehammer. Better yet, buy all four so you have a
choice of what to use. And remember, wood splits much better when it's
frozen, too, so you might just wait until the cold hits in Winter to start
splitting your wood. Only split a little at a time, because you don't want
to end up with a big pile of nicely-split wood sitting out in your yard. It
will invite theft from people who don't have any. If you already have trees
on your property, you're all set. Cut down about 4-5 cords right now, so
they can start drying out, then chop them as you need them.
  A "cord" of wood, by the way, is a volume measurement. It's 8' x 4' x 4',
or 128 cubic feet of wood (stacked). Some people that sell wood will try to
rip you off, so make sure you know what you're buying. If you purchase logs,
it's better to get a price per linear foot, based on the diameter of the
log. For example, you might ask for logs that are an average of 10" in
diameter, and you'll ask how much the charge per linear foot would be.
Something in the range of $1 - $2 would be great.    
 

Friday, October 24, 2008

Eeyore's News and view

Europe markets follow Asia lower; Japan index closes at 5-year low
LONDON (AP) — European stock markets were modestly lower Thursday after Japan's Nikkei index closed at a five-year low and Wall Street's Dow Jones index ended down nearly 6% Wednesday over mounting recession fears.
Europe's indexes could have been harder hit but for a late recovery in Asia, which helped the major indexes pare back a large chunk of their earlier losses.
Britain's FTSE 100 index of leading shares was down 35.24 points, or 0.9%, at 4,005.65, while Germany's DAX was 77.34 points, or 1.7%, at 4,493.73. The CAC-40 in France was 34.01 points, or 1.0%, lower at 3,264.17.
Earlier Japan's Nikkei 225 stock average tumbled 7% at the open but recovered to close down 2.5% at 8,460.98, while Hong Kong's Hang Seng Index was down 4.7% at 13,603 after falling more than 6% earlier. South Korea's market was down more, as the benchmark Kospi fell nearly 10% at one point but closed down 7.5% at 1,049.71.
The latest stock market jitters around the world have been stoked by a stream of disappointing earnings updates, particularly in the U.S. over the last few days. The worries contributed to a 6.1% drop in the Standard & Poor's 500 index on Wall Street on Wednesday that left it at its lowest level since April 2003.
Fears about the economy have become the primary concern as worries over credit markets and the banking system have been assuaged, for now at least, by government efforts to shore up banks, as well as massive liquidity boosts from the world's leading central banks.
"So long as there's this rather blunt, and perhaps rather realistic, fear of a global recession looming, then there's certainly scope that stocks will continue to struggle to find support in the short to medium term," said Matt Buckland, a dealer at CMC Markets.
Though the solvency of banks across Europe is less of an issue in the markets, their upcoming earnings are likely to be hit hard by the global economic downturn and that weighs on their share prices. Notable losers Thursday were BNP Paribas SA, down 2.5% and Barclays PLC, which was 5.6% lower.
One bright spot was the performance of Nestle SA, the world's biggest food and drink company, which saw its shares 5.2% in Zurich after it reported buoyant sales growth for the first nine months of the year.
Though the markets remain preoccupied with the general economic environment they continue to keep a close watch on interbank lending rates, which continue to fall, albeit relatively slowly.
Figures released Wednesday showed that the rate on three-month loans in dollars, known as the London Interbank Offered Rate, or Libor, fell by 0.29 percentage point, to 3.54%, while the so-called European Interbank Offered Rate for three-month euro-denominated loans dropped 0.03 percentage point to 4.936%, the lowest rate since June 5.
"Softer earnings and growth risks are dragging down equities, with government-central bank efforts to stabilize the money markets still bearing fruit with Libor rates easing further," said Stuart Bennett, a senior strategist at Calyon.
Abnormally high interbank lending rates have been the catalyst for the crisis in the financial markets over recent weeks, raising fears they would choke off credit to businesses and individuals.
Earlier in Asia, Japanese electronics powerhouse NEC Corp. plunged 8.5% after slashing its full-year earnings estimates Wednesday, blaming weaker demand for mobile phones and computer chips.
Japanese exporters were also battered by the surging yen against the dollar and euro. A stronger yen decreases the value of overseas profits when repatriated to Japan.
Mazda Motor Corp. plummeted 10.9%, Isuzu Motors Ltd. 9.6%, and Honda Motor Co. fell 6.6%. Game console maker Nintendo Co., which releases earnings Oct. 30, closed 8.65% lower.
Elsewhere Australia's key index pulled back more than 4% as slumping world commodity prices sent resource companies lower. Rio Tinto fell more than 14% while rival BHP Billiton sank more than 9%.
Oil rebounded modestly after plummeting more than $5 overnight to near 16-month lows. Sweet crude for December delivery rose $0.77 to $67.52 a barrel.
On the currency front, the dollar was little changed at 97.53 yen. In two months, the yen has gained more than 10% against the dollar.
The euro and the pound were both 0.1% lower at US1.2839 and US1.6257 respectively.

http://www.usatoday.com/money/markets/2008-10-22-global-markets-thursday_N.htm?loc=interstitialskip

Further banks may fail, says IMF
More European banks could fail before the financial crisis ends
More European banks "may fail" as doubts persist about the viability of their business models, the International Monetary Fund has warned.
Private funding is "virtually unavailable" and banks will have to rely on public intervention, asset sales and consolidation, it said.
The six-monthly study also warns that eurozone economic growth will almost grind to a halt next year.
Growth in the 15 euro countries will fall to just 0.2% in 2009, it forecast.
The report argued that disruptions in the US financial system have "heightened the risk of a systemic financial crisis in Europe further".
However, it maintained that a full-blown crisis "remains improbable".
Economic slowdown
The slowdown has resulted from high oil prices, rising inflation, a strong euro, falling export demand and the financial crisis, the Fund reported.
However, amid the gloom, inflation will slow next year - allowing room for cuts in interest rates, it forecast.
Meanwhile, the Icelandic government has said it hoped to reach an agreement on an economic rescue loan from the IMF this week.
"We hope an agreement with the IMF can be reached today or tomorrow," said commerce minister Bjoergvin Sigurdsson after a cabinet meeting on Tuesday.
If Iceland does receive a loan from the IMF, it would be the first Western country to do so since 1976.
Inflation eases
The IMF said growth in the eurozone would be 1.3% this year and just 0.2% next year - down from 2.6% in 2007.
"While these projections were finalised before the crisis reached systemic proportions in early October, they remain broadly valid," the IMF said in a statement.
Europe's biggest economy, Germany would see no growth at all in 2009 after expanding by 1.8% this year, while France would grow by just 0.2% after gaining 0.8% in 2008.
However as Europe's economies slow, price rises will ease, allowing the European Central Bank scope to cut interest rates, says the IMF.
"While containing inflation remains a policy concern, nurturing the recovery is likely to gain policy prominence," it said.

http://news.bbc.co.uk/2/hi/business/7682371.stm

Recession fears prompt more stock falls
LONDON (AFP) – Deepening fears of a global recession ensured another battering for the world's stock markets on Thursday as governments stepped up efforts to restore banking sector confidence.
As new figures showed cross-border lending by banks had suffered its biggest decline for a decade, Britain's government leant on bank bosses to start loosening the purse strings.
The impact of the downturn on industrial confidence was also highlighted with an official survey in France showing the sector was more pessimistic about future prospects than at any point in the last decade-and-a-half.
After the Dow Jones Industrial Average in New York lost 5.7 percent, all Asian markets saw serious losses on Thursday. Tokyo 's Nikkei index fell 2.46 percent, Australia closed down off 4.4 percent and Hong Kong 3.6 percent.
"The market is just disgraceful," said Ric Klusman, a dealer at Aequs Securities in Sydney. "There is no light at the end of the tunnel yet."
Europe 's main markets also fared badly with the main Paris and Frankfurt indexes falling although there was a slight rally in London.
The fresh falls came despite an announcement of further measures designed to restore confidence in the finance sector and among consumers.
Japan's central bank said it had injected 600 billion yen (6.2 billion dollars) into the short-term money market while the International Monetary Fund moved to bail out Pakistan, which could need as much as 15 billion dollars to help pay mounting foreign debt.
Governments around the world have unveiled packages over the last month totalling more than three trillion dollars, including loan guarantees and cash injections, to restore confidence to the financial system and reverse a sharp slowdown in lending.
The scale of the slowdown was illustrated by figures from the Bank for International Settlements, the world's biggest central banking body, which showed cross-border lending by banks fell 1.1 trillion dollars in the second quarter of 2008.
Banks were also hit by one trillion dollars' worth of withdrawals, particularly by clients in the United States, Britain and Switzerland.
In Britain, the finance minister was meeting the heads of major banks to urge them to relax their lending conditions for small firms.
Chancellor of the Exchequer Alistair Darling and Business Secretary Peter Mandelson were expected to tell bank chiefs that they must help small firms through the looming recession.
Major banks RBS, HBOS and Lloyds TSB were all helped by the government's 37-billion-pound (47-million-euro, 60-million-dollar) bailout this month.
As a condition of the deal, the banks must continue lending at 2007 levels, but many firms complain that loans are harder to obtain and that recent terms offered by banks have worsened.
Sweden's central bank meanwhile tried to encourage consumer confidence by slashing its key interest rate by half a percentage point to 3.75 percent and said it planned to make further cuts within six months.
In France, the state statistics agency said that industrial confidence had fallen to the lowest level since 1993.
Official forecasts already show France in its second quarter running of negative growth -- a technical recesssion -- and Thursday's grim news added to a mood of gloom hanging over prospects for a recovery.
"The financial crisis is endangering, sometimes threatening with death, many French firms, in particular medium, small and very small businesses," said the head of the employers' association, Laurence Parisot.
The trend was echoed by data from the European Union showing factories in the 15 nations sharing the euro saw new orders fall in August down a whopping 6.6 percent compared to the same month last year.
The ongoing financial crisis began with the emergence of problems on the US housing loan market last year when defaults on so-called subprime mortgage loans set off a chain reaction of problems for banks and other institutions across the globe at a time when the global economy was already slowing.
The crisis has already brought down the venerable US investment bank Lehman Brothers but bank chief and government leaders have expressed tentative hopes that recent bailout measures will ensure the worst is over


http://news.yahoo.com/s/afp/20081023/bs_afp/financeeconomyworld

In hard times, some flirt with survivalism
Economic angst has Americans stockpiling 'beans, bullets and Band-Aids’

By Kari Huus
Reporter
msnbc.com
updated 11:13 a.m. PT, Tues., Oct. 21, 2008
SEATTLE - Atash Hagmahani is not waiting for the stock market to recover. The former high-tech professional turned urban survivalist has already moved his money into safer investments: Rice and beans, for starters.
“I hoard food,” says Hagmahani, 44, estimating that he has enough to last his family a year or two. “I’m not ashamed to admit it.”
“People keep asking when this (economic crisis) is going to clear up,” says Hagmahani, who agreed to be interviewed on the condition that he be identified only by this pseudonym, which he uses for his survivalist blog, or by his first name, Rob.

The answer, he predicts, is that the country is entering what he calls a “Greater Depression.” “Maybe they jolly well better get used to the change in lifestyle.”

Hagmahani is not alone in concluding that desperate times call for serious preparations.

With foreclosure rates running rampant, financial institutions teetering and falling, prices for many goods and services climbing, and jobs being slashed, many Americans are making preparations for worse times ahead. For some, that means cutting spending and saving more. For others, it means taking a step into survivalism, once regarded solely as the province of religious End-of-Timers, sci-fi fans and extremists.

That often manifests itself as a desire to secure basic emergency resources — what survival guru Jim Wesley Rawles describes as “beans, bullets and Band-Aids.”

Rawles, speaking by phone from an “undisclosed location” somewhere between the Cascades and the Rocky Mountains, said he has seen traffic on his Web site, SurvivalBlog.com, explode in the last year.

Getting ready for ‘TEOTWAWKI’
“There are a lot more people — a lot more eager people — who are trying to get themselves squared away logistically,” said Rawles, who lectures and writes books on preparing for and surviving “TEOTWAWKI” — The End Of The World As We Know It.

Rawles, a self-described Christian conservative, said most of his readers had similar backgrounds when he started his blog in 2005. But he said that as the financial crisis has unfolded — particularly when oil prices began to soar — he started hearing from a much broader segment of the population.

“Now it’s the entire political spectrum — far right, far left and everything in between,” said Rawles. “I’m getting over 200 e-mails from readers a day. Now it is quite apparent how many more liberals are writing. Same concerns, different outlook. Greens, for instance, put less emphasis on self-defense and guns.”

Buoyed by an industry that flourishes when others languish, his site also is attracting record advertising revenue. The offerings include “secure, off-grid” mountain retreats, firearms training, home schooling aids, gold, freeze-dried food and water filtration systems.

Long-lasting food in demand
Others more directly embedded in the survival industry say they, too, are seeing the biggest surge of orders since the run-up to Y2K, when angst surged over whether computers would survive the dawn of a new millennium.

“I’m getting slammed with big orders,” said Kurt Wilson, a distributor of freeze-dried foods and other provisions with decades-long shelf life, like canned meat, cheese and butter.

“I have customers who were spending 200 bucks a month now spending $5,000 to $8,000,” Wilson said from his warehouse in Coeur d’Alene, Idaho. “I get little old ladies calling up, stocking up for their grandchildren.”


Wilson, who also has an online radio show called the Armchair Survivalist, said one of his new clients is a New York interior designer who specializes in outfitting cramped Manhattan apartments with hidden food storage units that double as tasteful furnishings.

Richard Mankemyer, general manager of the Survival Center, in McKenna, Wash. said he too is swamped.

“There are a lot more people interested in being prepared, stocking up and being on their own for extended periods of time, as we’ve been advising,” he said. Among them are businesses, he said, including a major Northwest corporation that recently spent “tens of thousands of dollars” to stock up on shelf-stable foods for its executives. He would not identify the company, but he said he urged the officials to stock up for its other employees as well.


Not just for the ‘Planet X’ crowd
Also reporting an uptick in business is Utah Shelter Systems, which makes underground dwellings designed for surviving the aftermath of a biological or nuclear attack.

“I think the economy certainly is part of it,” Sharon Packer, part owner of the Salt Lake City company, said of the surge in orders this year. “Anytime we become vulnerable, our risk of a terrorist attacks increases.”

She emphasizes that most people who purchase the shelters, which run between $40,000 and $50,000, are wealthy professionals interested in hedging their bets.

“Every once in awhile I have people who are concerned about Planet X or little green men, but they are usually not our clients,” she says.

A less surprising indication of the public nervousness about the recent financial turmoil can be found in gold brokerages and coin shops around the country. Many say that demand for gold and silver has been off the charts in recent months — a clear measure of concerns about the U.S. dollar and the soundness of the economy as a whole.

“We’re seeing absolutely unprecedented demand,” said Peter Grant, gold broker and analyst at USA Gold in Denver. “We’re seeing the full gamut … from high net worth (clients) to people looking at just a couple of ounces at a time.”

Preparing for a ‘major paradigm shift’
Seattle survivalist Hagmahani sees such commodity hoarding as just a partial measure for weathering a financial crisis.

On his blog, mutuallyassuredsurvival.com, he advises people to prepare for a “major paradigm shift” that will, in a decade, leave the U.S. with a Third World economy.

The $700 billion government financial bailout, in his view, only ensures a crisis that cannot be avoided after unbridled lending and spending.

“One of the most frightening possibilities is the banking system freezing up,” he said. “... Our remittance system is almost entirely through the banking system. … Without ATMs, you can’t get groceries, you can’t get paid… Is that a possibility? Yes.”

So Hagmahani, whose pen name is derived from the ancient religion of Zoroastrianism, is focused on procuring and stashing away enough food to last his family — himself, his wife and three kids — up to two years.

He said he began his preparations after witnessing the burst of the high-tech bubble in 2001, paying off the family’s debt, moving his assets away from stocks into safer investments, including, he implies, some precious metals and offshore accounts.

In the last three or four years, he has led his clan away from what he calls their former “yuppyish lifestyle.” They no longer eat out, cook most meals from scratch, and rarely drive their one car. They also are all learning practical skills — such as sewing, nursing and wielding a gun for self-defense.

“One thing I’m adamant about is that each of the kids needs real skills; they can’t just be a pencil pusher,” says Hagmahani of 19-year-old Hans, Sofia, 14, and Erik, 12. “You might get lucky and get a cushy job, but you might not. You need high-tech skills and low-tech skills for dealing with a systemic breakdown.”

Looking for farmland in South America
In addition to shifting some of his high-tech windfall into safe havens, Hagmahani is looking into buying farmland in South America — a last-ditch destination should the economic crisis become a catastrophe.

At the same time, he wants to be a model for others who want to be prepared. And he has his fans, relatively mainstream Americans who are worried by what they see and hear on the evening news.

“I didn’t want to be the crazy aunt in the attic,” said Susan Oakes, a fan of Hagmahani’s Internet site. She started worrying about the state of the economy a few years ago. “I started reading more and trying to find people who were credible, and not the tinfoil hat group…. trying to figure out what I could do,” she said.

To save money, she combined households with her two daughters’ families in eastern Washington state. She cashed out of some of her savings and bought gold, and then started to garden on their half-acre plot. She has stockpiled staples and learned to can her fruits and vegetables. She now has enough, she believes, to last her family for six months and to have some left for charity, which she expects to be in high demand.

But Oakes said she finds no comfort in being well-prepared for what she fears is coming.

“We’re in deep doo-doo,” she said. “I honestly believe the government thinks we’re idiots. … I get that they can’t come out and say ‘the sky is falling’ but it is.”

URL: http://www.msnbc.msn.com/id/27244465/

Thursday, October 23, 2008

Eeyore's news and view

More paper for the bon fire
Fed to buy commercial paper from mutual funds October 21, 2008 - 9:26am
By JEANNINE AVERSA AP Economics Writer
WASHINGTON (AP) - The
Federal Reserve announced Tuesday that it will start buying commercial paper _ a crucial short-term funding mechanism many companies rely on for day-to-day operations _ from money market mutual funds.
It's the latest effort by the central bank to break through a credit clog that has hobbled lending and threatens to plunge the country into a deep and painful recession.
The Fed is tapping its Depression-era emergency powers and creating a new facility to buy a vast array of commercial paper from the funds. Money market mutual funds have been under pressure as skittish investors demand withdrawals. Many companies rely on commercial paper to pay workers and buy supplies.
The situation has led to an intense credit crunch for companies depending on commercial paper.
"The short-term debt markets have been under considerable strain in recent weeks as money market mutual funds and other investors have had difficulty selling assets to satisfy redemption requests," the Fed explained.
The Fed plans to buy an array of commercial paper from the funds _ including some that is not backed by assets as well as those with remaining maturities of 90 days or less. The Fed also will buy dollar-denominated certificates of deposit.
By doing so, the Fed hopes to improve conditions so banks and other financial institutions will be more inclined to lend to each other, and to consumers and businesses.
"Improved money market conditions will enhance the ability of banks and other financial intermediaries to accommodate the credit needs of businesses and households," the Fed said.
For about a month, the Fed has been making billions of dollars worth of loans to money market mutual funds _ via banks _ to help relieve pressures on the funds. And, in a separate program that launches on Oct. 27, the Fed will buy vast amounts of commercial paper from an array of companies.

http://wtop.com/?nid=111&sid=1501144

We lack character as a country so this and the other suicides don't surprise me in the least
More middle-aged women are committing suicide October 21, 2008 - 8:11am
WASHINGTON - More middle-aged women are committing suicide.
Johns Hopkins researchers say middle-aged whites are emerging as "a new high-risk group."
While the overall suicide rate rose 0.7 percent between 1999 and 2005, the annual rate for middle-aged white women between 40 and 64 rose 3.9 percent and 2.7 percent for white men.
The raw numbers for white women in this age group show a 35 percent jump, from 2,429 suicides in 1999 to 3,280 in 2005. For white men, the number show a 33 percent jump from 7,916 to 10,535 during the same time frame.
The analysis from researchers at the Bloomberg School of Public Health at Johns Hopkins University is published online in the American Journal of Preventive Medicine.
The increase is seen as a major shift. Previously, it had been that teens, young adults and senior citizens who had highest risk for suicide, says Susan Baker, a professor in injury prevention with a special expertise in suicide.
Researchers say the numbers are not "just little blips." They've analyzed a lot of data -- publicly available death certificate data from the
U.S. Centers for Disease Control and Prevention.
Shootings remain the most common method of suicide, although poisonings have increased sharply, especially among women. The research finds more men and women are hanging or suffocating themselves.
Baker says more needs to be known about why the patterns of suicide are shifting and under what conditions the victims were living.
Bonnie Bear of the
San Diego-based Survivors of Suicide Loss, an education and support group, tells USA TODAY that divorce and financial stress pushes people over the edge.
She worries the nation's financial crisis will prompt more suicides among middle-aged adults.
Janice Wassell, a demographer at the University of North Carolina-Greensboro, says the group with the higher rates -- those 45 to 49 -- are more alienated and isolated. They were kids when the divorce rate went up.

http://wtop.com/?nid=106&sid=1501108

These next two article are what i see happening to the US as it slides in to third world status, there have been a number of cut backs on the State level which will lead to this type of thing, if not taken care of.
Zimbabwe: Cholera Outbreak Threatens to Become Endemic
20 October 2008Posted to the web 20 October 2008
Harare
A cholera outbreak that has bridged Zimbabwe's dry season is proving difficult to contain and has spread from the cities to rural areas.
There are fears that the onset of the rainy season could make the waterborne disease endemic if the authorities fail to address the water and sanitation crisis plaguing the county.
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Cholera is an intestinal infection causing acute diarrhoea and vomiting and, if left untreated, can cause death from dehydration within 24 hours. It is easily treatable with rehydration salts.
An anthrax outbreak has also been reported in Hurungwe, a rural area in Mashonaland West Province, about 300km north of the capital, Harare, "where 10 cases have been reported, but no deaths as yet. WHO [World Health Organisation] is still investigating", the UN said in a recent situation report on cholera and anthrax.
Anthrax is caused by the bacterium, Bacillus anthracis, and mostly affects wild animals and domesticated cattle, although it can be transferred to humans through inhalation of the bacteria's spores from a live or infected dead animal, blood contact if the skin is broken, or by eating the undercooked meat of a diseased animal. Anthrax is curable if diagnosed early.
120 deaths
The UN noted that "a cholera outbreak has been a cause of concern in Zimbabwe since February 2008 ... so far 120 deaths have been recorded cumulatively, with the highest percentage found in Mashonaland Central" Province in the country's north.
The collapse of health and municipal services is seen as the cause for the spread of the disease, with local authorities failing to provide potable water, rubbish collection and adequate sanitation, forcing people to dig shallow wells to obtain household and drinking water in areas where sewerage spills into streets because of poor, or non-existent, maintenance regimes.
The state-owned Zimbabwe National Water Authority (ZINWA) has pumped raw sewerage into Lake Chivero, one of the reservoirs providing Harare with water; residents with access to piped water often have to contend with a smelly greenish discharge from their taps.
The UN noted in its report that Zimbabwe was battling three cholera outbreaks in different locations. Chitungwiza, a dormitory town 35km southeast of Harare, had recorded 144 cholera cases and 15 deaths up to 13 October. UNICEF has been trucking in 30,000 litres of water daily and providing hygiene education.
In Mola, in the western district of Kariba, there were 22 cases with one fatality as of 7 October, and "probably more cases within the community, unrecognised", the UN report said.
Chinhoyi, in Mashonaland West Province, had recorded 6 deaths by 13 October, and WHO reported another 15 cases the following day, but "many more are assumed to be in the community, and paediatric cases are being admitted to the hospital."
Recurring disease
A cholera outbreak on 31 August in Harare affected the townships of Mbare, Kuwadzana, Highfields, Chikurubi and Mbvuku, in which 19 cases and one death were recorded. The last case was reported on 24 September.
Nevertheless, even where the cholera outbreaks have been brought under control, the UN report warns: "These locations remain potentially risk areas, considering cholera [is a] recurring trend."
The Combined Harare Residents Association (CHRA) said in a statement that Zimbabwe's political deadlock between President Robert Mugabe's ZANU-PF and Morgan Tsvangirai's Movement for Democratic Change was having a direct impact on the provision of services.
"The water woes that have seen many Harare residents losing their lives to cholera outbreaks are a result of the ruthless decision to hand over the administration of water and sewer services to ZINWA," the statement said.
"CHRA urges the powers that be to stop burying their heads in the sand and attend to the governance stalemate as a matter of urgency."

http://allafrica.com/stories/200810201412.html

Iraq cholera cases on the rise September 25, 2008 - 5:48am
BAGHDAD (AP) - Iraq's Health Ministry is reporting a total of 327 confirmed cholera cases in central and southern
Iraq since an outbreak of the disease last month.
Dr. Ihsan Jaafar, the ministry spokesman, says Babil province south of
Baghdad has had 200 cases, while 61 others were reported in Baghdad province.
The statement Thursday says the death toll from the outbreak stands at five.
Cholera is a gastrointestinal disease that can be spread by a lack of clean drinking water. The problem has been worsened by the poor state of Iraq's infrastructure after years of neglect and war.

http://wtop.com/?nid=105&sid=1484921

We will finish up with a few partical articles on the World's economy
French Government to inject €10.5bn into top six banks
France’s top six banks are to receive a €10.5 billion (£8.2 billion) cash injection from the Government by the end of the year in a move designed to oil the wheels of a rusting economy, Christine Lagarde, the Finance Minister, said last night.
Mrs Lagarde, who announced the initiative after a meeting with bank executives, said the State would subscribe to subordinated debt, but not take shares in the groups.
Under the plan, Crédit Agricole will receive €3 billion, BNP Paribas €2.55 billion, Société Générale €1.7 billion, Crédit Mutuel €1.2 billion, Caisse d’Epargne €1.1 billion and Banque Populaire €950 million.
Mrs Lagarde said the Government was prepared to inject a further €10.5 billion next year “if tensions persist in the markets”.
(read the rest at)
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article4981639.ece

Sweden launches financial rescue package
Sweden has become the latest country to launch a financial rescue package, after pledging more than 1.5 trillion Swedish kronor (£117bn) to support its financial firms.

The government will offer guarantees on bank loans up to a total of 1.5 trillion kronor and has set aside 15bn kronor in a "financial stabilisation fund", which would be used to buy shares in banks that fall into trouble.
Sweden's central bank also said it would issue a $10bn (£5.7bn) loan on Wednesday to help the credit markets.
It follows similar moves by the US, UK and European Central Bank, which have seen interbank lending rates decline as confidence begins to creep back into the markets.

(the rest of the article is at )
http://www.telegraph.co.uk/news/worldnews/europe/sweden/3229459/Sweden-launches-financial-rescue-package.html

Iceland agrees $6 billion deal with IMF
The credit crunch claimed its first sovereign scalp last night as Iceland readied itself to accept an International Monetary Fund (IMF) bailout. The North Atlantic nation is believed to have negotiated a $6 billion (£3.49 billion) IMF-led rescue package backed by the central banks of its Nordic cousins, although the IMF has yet to make a formal announcement.
The last Western country to turn to the IMF was Britain, which called the international lender of last resort in 1976 when the banking system was facing collapse and foreign currency reserves had run dry.
The IMF may provide about $1 billion in emergency cash for Iceland with the balance lent by Norway, Sweden and Denmark and additional money possibly coming from Russia and Japan. Iceland, which has the same population as Coventry, had hoped that a bigger loan from Russia would save it from the humiliation and financial strictures of an IMF bailout.
Bjorgvin Sigurdsson, the Icelandic Banking and Commerce Minister, told The Times last night: “The talks with the IMF have progressed so that we are now at a stage where conditions, pros and cons are being looked over.”
(the rest of the article is at)
http://business.timesonline.co.uk/tol/business/economics/article4982010.ece

No Chinese cash bailout for Pakistan, next stop IMF
*New York Times report says Zardari returned from Beijing without commitmentBy Khalid HasanWASHINGTON: Contrary to expectations, China has refused Pakistan the immediate cash injection of $1.5 billion to $3 billion it was seeking, leaving Islamabad no alternative but to go to the International Monetary Fund (IMF), according to a report in the New York Times on Sunday.Filed from Islamabad by correspondent Jane Perlez, the report said that President Asif Ali Zardari had returned from Beijing without a commitment. A Chinese official was quoted as having told a Western diplomat, “We have done our due diligence, and it isn’t happening.” Javed Burki, a former Pakistani finance minister, said China had provided $500 million in balance-of-payments support in 1996, when Pakistan was on the brink of default. But those days are over, he said, because China is no longer inclined to grant cash outright without structural reforms from the receiving government.Shaukat Tareen, the new financial adviser, who accompanied Zardari to China, was seen as preparing the public for an IMF programme on Saturday by saying for the first time at a news conference that if Pakistan could not stabilise its economy within 30 days, it “can go to the IMF as a backup”. Then he added, “We may have to go to Plan B.” According to the report, “With the United States and other nations preoccupied by a financial crisis, and Saudi Arabia, another traditional ally, refusing to offer concessions on oil, China was seen as the last port of call before the IMF. Accepting a rescue package from the fund would be seen as humiliating for Mr Zardari’s government, which took office this year. An IMF-backed plan would require Pakistan’s government to cut spending and raise taxes, among other measures, which could hurt the poor, officials said.”The report also said that Saudi Arabia had refused to grant the oil facility Pakistan was seeking. State Bank Governor Shamshad Akhtar told the newspaper on Saturday, “We are very open to all kinds of financial support. We’ve taken a lot of corrective actions, and we plan to take more.”

http://www.dailytimes.com.pk/default.asp?page=2008%5C10%5C20%5Cstory_20-10-2008_pg1_2

Wednesday, October 22, 2008

Eeyore's important news and view

Military report: Terms 'jihad,' 'Islamist' needed
Team sees no reason to soften words
(Contact)
A U.S. military "Red Team" charged with challenging conventional thinking says that words like "jihad" and "Islamist" are needed in discussing 21st-century terrorism and that federal agencies that avoid the words soft-pedaled the link between religious extremism and violent acts.
"We must reject the notion that Islam and Arabic stand apart as bodies of knowledge that cannot be critiqued or discussed as elements of understanding our enemies in this conflict," said the internal report, a copy of which was obtained by The Washington Times.
The report, "Freedom of Speech in Jihad Analysis: Debunking the Myth of Offensive Words," was written by unnamed civilian analysts and contractors for the
U.S. Central Command, which is responsible for the Middle East and South Asia. It is thought to be the first official document to challenge those in the government who seek to downplay the role of Islam in inspiring some terrorist violence.
"The fact is our enemies cite the source of Islam as the foundation for their global jihad," the report said. "We are left with the responsibility of portraying our enemies in an honest and accurate fashion."
The report contributes to an ongoing debate within the
U.S. government and military over the roots of terrorism, its relationship to Islam and how best to counter extremist ideology.
• Read the internal report, "Freedom of Speech in Jihad Analysis." (
download pdf)
It cites two Bush administration documents that appear to minimize anylink between radical Islam and terrorism.
A January 2008 memorandum from the Department of Homeland Security's Office for Civil Rights and Civil Liberties stated that unidentified American Muslims recommended that the U.S. government avoid using the terms "jihadist," "Islamic terrorist," "Islamist" or "holy warrior," asserting that would create a "negative climate" and spawn acts of harassment and discrimination.
Dan Sutherland, Homeland Security officer for civil rights and civil liberties, said the document is not department policy.
"This was a compilation of recommendations and thoughts provided to us by some prominent American Muslim thinkers and never was intended to be Department of Homeland Security policy," he said in an interview.
"If a paper from another part of government says this doesn't make sense, that's a valid point. This memo is a thought piece meant to stir discussion."
Mr. Sutherland said he agrees that a debate on terrorist terminology is needed in describing "the very serious threat we face."
A second document mentioned by the report was developed for the State Department by the National Counterterrorism Center's Extremist Messaging Branch.
It urges officials to use the term "violent extremist" and never to use "jihadist" because that will "legitimize" terrorists.
Michael E. Leiter, director of the counterterrorism center, questioned some of the memo's conclusions during a July 10 Senate hearing, said spokesman Carl Kropf.
"I do think you cannot separate out the fact that the terror fight we are fighting today involves Islam as a religion," Mr. Leiter said under questioning from Sen. Joe Lieberman, Connecticut independent. He added, however, "the ideology which motivates these terrorists has very little to do in reality with the religion of Islam."
Oneof the most sensitive issues in the new report involves the word jihad.
An Arabic word derived from the verb meaning "to strive," it appears about 30 times in the Koran, but "the preponderance of references refer to internal striving to prove one's piety," said
William Graham, a professor of Middle East Studies at Harvard University.
About 10 references are clearly to fighting, said Mr. Graham, who is also dean of the university's divinity school.
The word, often translated as "holy war," has been used in a military context throughout Muslim history, said Princeton University Professor Emeritus Bernard Lewis, a leading authority on Islam.
Several terrorist groups, including Palestinian Islamic Jihad, include the word in their titles.
The Red Team report said jihad is an obligation of all Muslims under Islamic law and must be performed "until the whole world is under the rule of Islam."
However, the Koran states that the embrace of Islam must be voluntary, Mr. Graham said.
Jim Zogby, president of the Arab American Institute, said he had no problem using words such as jihad, provided it was made clear that militant groups were misusing the terms to justify their violent actions.
"They're not talking about jihad in a theological sense," Mr. Zogby said. "Jihad means to struggle or strive for the good and against evil. These people are talking about violent revolution."
Stephen Suleyman Schwartz, executive director of the Center for Islamic Pluralism in Washington, cautioned against interpreting the debate as a dispute between those who think Islam as a whole is bad and those who think Islam as a whole is good.
"Islam is manifestly in crisis, with bad people who are Muslims fighting against good people who are Muslims. That should be the point - how to mobilize the good people against the bad people," Mr. Schwartz said.
The Red Team report said the government documents in question reflect "the views and opinions of a very small [number] of Americans whose contributions may have escaped critical review. ... While there is concern that we not label all Muslims as Islamist terrorists, it is proper to address certain aspects of violence as uniquely Islamic," the report says.
The report notes that some terms for terrorists, such as "Islamo-fascist," are "conspicuously offensive."
The Council on American Islamic Relations (CAIR), a prominent U.S. Muslim group, has argued that government terminology should minimize any connection between Islam and terrorism to avoid fanning religious hatred.
A council spokesman said Corey Saylor, CAIR's legislative director, recently stated the group's views on the issue in a Detroit News Op-Ed article.
Mr. Saylor said CAIR opposes the use of "jihadist" and other Islamic terms because the use of non-Islamic terms "serves the strategic purpose of isolating extremists and removing the false cloak of religiosity that they use to justify their barbarism."
Marine Corps Maj. Joseph D. Kloppel, a Central Command spokesman, said Red Team reports "are often controversial."
"But the resulting debate sharpens reasoning, forces intellectual integrity, and improves decisionmaking and subsequent action," he said in an e-mail, noting that its products are "designed for internal use" and not meant to represent the personal views of the Centcom commander.
http://www.washingtontimes.com/news/2008/oct/20/report-says-terms-jihad-islamist-needed

ECB's Nowotny Sees Global `Tri-Polar' Currency System Evolving
By Jonathan Tirone
Oct. 19 (Bloomberg) -- European Central Bank council member
Ewald Nowotny said a ``tri-polar'' global currency system is developing between Asia, Europe and the U.S. and that he's skeptical the U.S. dollar's centrality can be revived.
``What I see is a system where we have more centers of gravity'' Nowotny said today in an interview with Austrian state broadcaster ORF-TV. ``I see for the future a tri-polar development, and I don't think that there will be fixed exchange rates between these poles.''
The leaders of the U.S., France and the European Commission will ask other world leaders to join in a series of summits on the global financial crisis beginning in the U.S. soon after the Nov. 4 presidential election, President
George W. Bush, French President Nicolas Sarkozy and European Commission President Jose Barroso said in a joint statement yesterday.
Nowotny said he was ``skeptical'' when asked whether the Bretton Woods System of monetary policy, set up after World War II and revised in 1971, could be revived to aid global currency stability. The U.S. meeting should aim to strengthen financial regulation, define bank capital ratios and review the role of debt-rating agencies.
European leaders have pressed to convene an emergency meeting of the world's richest nations, known as the Group of Eight, joined by others such as India and China, to overhaul the world's financial regulatory systems. The meetings are to include developed economies as well as developing nations.
`Real Economy'
Bush, 62, has cautioned that any revamping must not restrict the flow of trade and investment or set a path toward protectionism. The G8 nations are Britain, Canada, France, Germany, Italy, Japan, Russia and the United States. The U.S. hasn't committed itself to the sweeping terms of Europe's agenda, White House press secretary
Dana Perino said yesterday.
Sarkozy wants the G8 to consider re-anchoring their currencies, the hallmark of the 1944 Bretton Woods agreement that also gave birth to the International Monetary Fund and World Bank.
The current financial crisis, in which European governments have pledged at least 1.3 trillion euros ($1.7 trillion) to guarantee loans and take stakes in lenders, should be ``under control'' by mid-2009, Nowotny said. The economy will suffer longer.
``What comes then, unfortunately in parallel, will be the problems for the real economy,'' Nowotny said. ``The growth rate in 2009 will be significantly below what we have in 2008.''
He predicted gross domestic product growth around 1 percent in Austria next year.
To contact the reporters on this story:
Jonathan Tirone in Vienna at jtirone@bloomberg.net Last Updated: October 19, 2008 11:52 EDT
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=apjqJKKQvfDc

Russian Expansionism is still continuing, with our eyes on the economy
Police in South Ossetia ordered to return fire October 19, 2008 - 1:24pm
U.S. Assistant Secretary of State Daniel Fried, left, listens to U.S. Ambassador to Georgia John Tefft as they visit a church, near the ethnic Georgian rural town of Mtskheta-Mtianeti on the edge of the Russian-backed separatist region of South Ossetia which broke away from Georgia, Sunday, Oct. 19, 2008. The visit came amid persistent tension along the edges of the breakaway region at the heart of the August war between Georgia and Russia. (AP Photo/Shakh Aivazov, Pool)
By STEVE GUTTERMAN Associated Press Writer
MOSCOW (AP) - Police in
South Ossetia have been ordered to shoot back if they come under fire _ a directive that increases the threat of new violence between Georgia and the Russian-backed separatist region.
South Ossetia's top police official issued the order after a police post came under automatic weapons fire Saturday from the ethnic Georgian village of Nikozi, the separatist government said.
Acting Interior Minister Mikhail Mindzayev said no one was hurt by the gunfire, which he called a provocation by Georgian forces.
"We will not allow our people and our officers to be killed," Mindzayev said in a statement.
Georgian Interior Ministry spokesman Shota Utiashvili denied that Georgian forces fired at a South Ossetian post and said Nikozi came under fire early Saturday from South Ossetian-controlled territory.
A visiting
U.S. diplomat toured Nikozi and other villages Sunday in Georgian territory outside South Ossetia, where residents have been returning after Russian troops withdrew earlier this month. Many homes in the area have been looted or burned, damage that Georgians blame on South Ossetians.
The visit by
Daniel Fried, the assistant secretary of state for European and Eurasian Affairs, was the latest show of U.S. support for Georgia.
The shoot-back order came amid persistent tension along the breakaway region at the heart of the August war between Georgia and
Russia.
South Ossetia's government also criticized
European Union monitors who are patrolling Georgian territory outside South Ossetia after Russian forces withdrew earlier this month under an EU-brokered cease-fire.
The separatist government accused the monitors of bias and claimed they are ignoring alleged Georgian cease-fire violations.
Georgia, in turn, has accused Russia and separatist forces of cease-fire violations, including the fatal shootings of at least two Georgian police officers.
The five-day war in August followed years of growing tension between Russia and Georgia, whose pro-Western
President Mikhail Saakashvili has wooed Washington and pushed for NATO membership. Russia, meanwhile, gave increasing support to South Ossetia and another Georgian separatist province, Abkhazia.
Russia says will keep 7,600 troops in the breakaway regions, which it recognized as independent nations after the war.
http://wtop.com/?nid=105&sid=1469029

South Korea’s $130bn guarantee may not be enough to stave off a crisis called Kiko
With its currency ravaged, its stocks mauled in a flight of foreign money and red flags raised over the stability of its largest banks, South Korea has unveiled a $130 billion (£75 billion) effort to win back the confidence of markets.
Yet Korean banking sources gave warning of a potentially devastating crisis for hundreds of the country's exporters sitting on billions of dollars of so-called “knock-in knock-out [Kiko]” currency hedging contracts. Signed last year before the value of the Korean won fell by 40 per cent, and essentially betting that the local currency would rise against the dollar, the accumulated Kiko losses are expected to drive some companies to bankruptcy, forcing the already troubled Korean banks to assume the cost of those collapses.
Yesterday's confidence-boosting gambit by the Government, which analysts believe will be received positively by investors and is likely to be followed by further economic stimulus measures for the construction sector this week, comes in the form of a $100 billion state guarantee on the foreign borrowings of Korea's banks.
As an additional part of the package, the Bank of Korea said that it would draw down $30 billion from its hefty foreign reserves to help to alleviate the “dollar drought” that has battered the won.
There will also be tax breaks to entice long-term investors back to Seoul's devastated stock market and a $750 million cash injection for the state-run Industrial Bank of Korea to provide loans for cash-starved small businesses.
The package was announced after weeks of mostly fruitless “verbal intervention” to calm market nerves and strenuous denial by the Korean authorities that the country's banking system was especially vulnerable to the global credit crunch.
Throughout that time, analysts have said that the high leveraging of Korea's private sector and the banks' heavy reliance on short-term foreign borrowings made it significantly more fragile than other Asian financial systems. The Korean authorities have pointed consistently to their $240billion in foreign exchange reserves as cause for the markets not to panic. Many billions have already been ploughed into efforts to shore up the won amid rising inflation this summer.
Because about 12 per cent of the Korean banking sector is funded by the wholesale debt market, the near-total dysfunction of those markets since September has raised concerns that the Korean banks will encounter problems rolling over those loans. Such fears were stoked last week when Standard & Poor's said that it might downgrade its credit ratings on seven of the country's largest financial groups.
In a statement that accompanied yesterday's market-calming package, the South Korean Strategy and Finance Ministry said that the measures were part of international efforts to combat the financial meltdown, but again insisted that “despite the recent credit crisis, Korea's real economy and its financial sector are sound”.

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article4974400.ece

More fuel for the fire, i guess if your aim is to burn a Nation down, Congress and the President are going about it with gusto
Momentum building for new economy-boosting package
WASHINGTON – Momentum is building for a fresh dose of economic stimulants to boost the country out of the doldrums — perhaps by putting more money in Americans' pockets. The White House said Monday that President Bush was open to some sort of action after Federal Reserve Chairman Ben Bernanke warned the slump could drag on without the extra bracing tonic.
On Wall Street, stocks bolted higher, with the Dow Jones industrials rising 413 points. There also were some new signs that credit conditions were thawing a bit.
The national economy, already wobbling, has been rocked by a trio of hard punches from the housing, credit and financial crises. With a recession widely seen as inevitable, if not already under way, the focus in Washington has shifted to the questions of how bad, how long and how to limit the pain.
There is increasing talk of a post-election special session calling Congress back to the Capitol. But urgency varies greatly according to whom you talk to — and when.
"We're continuing to have conversations with members of Congress, and we're open to ideas that they would put forward ... that would stimulate the economy and help us pull out of this downturn faster," White House press secretary Dana Perino said around noon Monday, shortly after Bernanke endorsed the need for a fresh and "significant" round of government action.
A couple of hours later, Bush seconded Perino's remarks, but he also said in a more optimistic tone: "I have heard that people's attitudes are beginning to change from a period of intense concerns — I would call it near panic — to being more relaxed." He commented after a closed meeting with business leaders in Alexandria, La.
If congressional leaders and Bush — who has been cool to more federal stimulus spending given already exploding budget deficits — were to hash out an acceptable package, it would require a special session after the Nov. 4 elections.
If an agreement can't be worked out, the effort probably would be taken up by the next Congress and the next president. Democrat Barack Obama has strongly advocated more government stimulus, while Republican John McCain is keeping his options open.
House Speaker Nancy Pelosi of California and fellow congressional Democrats are pushing a package that could cost as much as $150 billion. Some economists, however, have advised them in recent days that to have a real impact, the total would have to be far larger, as much as $300 billion.
As part of that package, Democrats want to resurrect a $61 billion House-passed measure that included about $37 billion in public works spending, $6 billion to extend jobless benefits, $15 billion to help states to pay their Medicaid bills and $3 billion in food stamp assistance for the poor.
The Democrats also are considering a second round of tax rebates to follow the $600 to $1,200 checks most individuals and couples got earlier this year. That money, going directly to consumers in hopes they would spend it, could push the price tag much higher.
Unemployment — now at 6.1 percent — is expected to hit 7.5 percent or higher next year. And millions of Americans have been watching their retirement nest eggs and home values shrivel.
One-third of Americans are worried about losing their jobs, half fret they will be unable to keep up with mortgage and credit card payments, and seven in 10 are anxious that their stocks and retirement investments are losing value, according to an Associated Press-Yahoo News poll of likely voters released Monday.
Sen. Charles Schumer, D-N.Y., a member of the Democratic leadership, predicted Congress would return in November. "We couldn't have gotten a better supporter for a stimulus package than Ben Bernanke," Schumer said. "His support will change the stimulus from a possibility to a reality."
Pelosi said, "I call on President Bush and congressional Republicans to once again heed Chairman Bernanke's advice and as they did in January, work with Democrats in Congress to enact a targeted, timely and fiscally responsible economic recovery and job creation package."
However, in an interview with The Associated Press last Friday, Pelosi had said Congress is unlikely to approve a tax rebate before Bush leaves office, and she signaled that prospects were dim that Democrats would be able to strike a deal with the president on an economic aid package during a post-election session.
In February, Congress enacted a $168 billion stimulus package that included tax rebates for people and tax breaks for businesses. The rebate checks did help to lift economic growth in the spring. After that, though, consumers cut back sharply and businesses have retrenched in turn.
"With the economy likely to be weak for several quarters, and with some risk of a protracted slowdown, consideration of a fiscal package by the Congress at this juncture seems appropriate," Bernanke told the House Budget Committee. It marked the first time Bernanke endorsed the need for another round of economic stimulus.
The Fed chief suggested that Congress design the package to limit the longer-term affects on the government's budget deficit, which hit a record in the recently ended budget year and is undoubtedly headed higher.
Bernanke said the package also should include provisions "to help improve access to credit by consumers, home buyers, businesses and other borrowers."
He also left the door open to further interest rate reductions by the Federal Reserve itself.
Fed policymakers meet next on Oct. 28-29, and many economists believe they will again lower their key rate — now at 1.50 percent — to bolster the economy. Just a few weeks ago, the Fed and the world's other major central banks joined forces to ratchet down rates, the first coordinated action of that kind in the Fed's history.
There were some signs that credit problems were improving a bit. Bank-to-bank lending rates fell for a sixth straight day on Monday. Demand for Treasury bills, regarded as the world's safest investment, lessened somewhat but remained relatively high in a sign that there was still much fear in the markets.
Last week, the Treasury Department announced it would inject up to $250 billion in U.S. banks in return for partial ownership. So far this year, 15 banks have failed, including the largest U.S. bank failure in history, compared with three last year. And major Wall Street investment firms have been swallowed by other companies, have filed bankruptcy or have converted themselves into commercial banks to weather the financial storm.

http://news.yahoo.com/s/ap/20081020/ap_on_bi_ge/financial_meltdown