Here is the Thursday, July 17th, 2008 edition of interesting reads from around the world.
Bush Claims Executive Privilege in Plame Case
President George W. Bush invoked executive privilege to avoid turning over records of an FBI interview of Vice President Dick Cheney and other documents subpoenaed by Congress in the CIA leak investigation. So much for that bravado that he would spare no effort in determing the source of the leak. More from the Washington Post.
Petrodollars and Geo-Politics
The Los Angeles Times examines how nations with vast oil wealth are gaining clout. It is actually the largest transfer of wealth in human history. Here’s the LA Times synopsis:
Some autocratic governments are challenging U.S. policies and silencing domestic dissent. But their increased spending raises the risk of inflation, which could erode popular support.
UK Unemployment Rate Rises Sharply
Unemployment last month rose at its fastest rate since the depths of the early 1990s recession, as the turmoil in the housing and financial markets continued to take its toll on the UK economy. The number of people claiming unemployment benefit rose for the fifth month in a row, the Office for National Statistics said. The rise - of 15,500 to 840,100 - is the biggest since December 1992. The jobless rate remained at a low 2.6%. The broader labour force survey measure rose 12,000 between March and May to 1.62 million. That was the third rise in a row although the unemployment rate stayed at 5.2%. Complete details from the UK Guardian.
China Economic News
China’s economy grew at a slower pace in the second quarter under the weight of slower exports and a drive by the central bank to tighten credit, but inflationary pressures remained uncomfortably high, the government said Thursday. Annual gross domestic product growth slowed to 10.1 percent in the second quarter from 10.6 percent in the first three months of the year and 11.9 percent in all of 2007, the National Bureau of Statistics said. While consumer inflation slowed to 7.1 percent in June from 7.7 percent in May, pipeline price pressures grew. More from the International Herald Tribune.
The Impact of High Energy Prices on Asia
The Asia Times looks at how Asian economies and Asian consumers are coping with the rise in energy prices.
When it comes to energy conservation, Japan provides a glaring counterpoint to the United States. Consider what has happened in both countries since the first oil shock of the mid-1970s when prices quadrupled.
That price hike initially led to a drive for fuel efficiency in the US, Western Europe and Japan. It also gave a boost to the idea of developing renewable sources of energy. Ever since, Japan has followed a consistent, long-range policy of reduction in petroleum usage, while the US first wavered and then fell back dramatically.
Under the presidencies of Gerald Ford and Jimmy Carter, the US modestly improved the fuel efficiency of its vehicles, as stipulated by a federal law. Carter also announced a $100 million federal research and development program focused on solar power and symbolically had a solar water heater installed on the White House roof.
During the subsequent presidency of Ronald Reagan, when oil prices fell sharply, energy efficiency and conservation policies went with them, as did the idea of developing renewable sources of energy. This was dramatized when Reagan ordered the removal of that solar panel from the White House.
In the private sector, utilities promptly slashed by half their investments in energy efficiency. President George H W Bush, an oil man, followed Reagan’s lead. And his son, George W (along with Vice President Dick Cheney, former chief executive of energy services giant Halliburton) has done absolutely nothing to wean Americans away from their much talked about “addiction to oil”.
Even now, instead of urging Americans to cut oil usage (and putting a little legislative heft behind those urgings), politicians of both parties are blaming soaring gas and diesel prices on “speculators”, conveniently ignoring how thin a line divides “speculators” from “investors”.
In Japan, on the other hand, the government and private companies have stayed on course since the first oil shock. Despite the doubling of Japan’s gross domestic product during the 1970s and 1980s, its annual overall levels of energy consumption have remained unchanged. Today, Japan uses only half as much energy for every dollar’s worth of economic activity as the European Union or the United States. In addition, national and local authorities have continually enforced strict energy-conservation standards for new buildings.
It is, again, Japan that has made significant progress when it comes to renewable sources of energy. By 2006, for instance, it was responsible for producing almost half of total global solar power, well ahead of the US, even though it was an American, Russell Ohl, who invented the silicon solar cell, the building block of solar photovoltaic panels, which convert sunshine into electricity.
Belgium: The World’s Most Successful Failed State
Leave it to Der Spiegel to come up with the clever headline. In this report, the German news magazine ponders:
Chaos has returned to Belgium’s capital: The government has collapsed, the prime minister has offered his resignation. German newspapers on Wednesday wonder if the linguistically divided country will ever get its act together.
I adore Belgium and I have one very good Belgian friend from Oostende. No doubt, Belgian beer and chocolates are the world’s best. Most European countries have a linguistic divide, the problem in Belgium is that the divide is also a significant cultural and economic one. I have been briefly to Wallonie but I am always more drawn to Brussels, Ghent, Antwerp and, above all, Brugge. It will be interesting to see how the Belgians resolve this divide.
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