The Republican and Democratic leaders of a 12-member congressional “super committee” are set to declare defeat in a joint statement to be released after three months of talks failed to bridge deep divides over taxes and spending. After a year of bruising budget battles, it is another sign that U.S. lawmakers are too entrenched to compromise on the tax increases and benefit cuts that budget experts say are needed to set the country’s finances on a stable path. The panel’s failure will cement notions of a dysfunctional Washington among voters and investors already disenchanted with the brinkmanship that brought the country to the edge of a first-ever debt default in August.Lawmakers likely will not return to the problem until 2013 at the earliest as they shift their attention to the 2012 presidential and congressional elections. Budget skirmishes will continue over the coming months. Democrats will try to extend short-term economic stimulus measures, such as enhanced unemployment benefits and a payroll tax cut, that they had hoped to roll in to any super committee deal. Analysts say the economy could slide back toward recession if they expire as planned at the end of the year. Republicans will scramble to shield the military from $600bn in automatic spending cuts that are triggered, beginning in 2013, in the absence of a deal. Asian stocks and US stock futures fell as news of the collapse weighed on markets. Market expectations for a deal were low, and investors have viewed the United States as a […]

For the first time since 2009, unemployment in Germany is on the increase. While the increase was minimal, the upward shift was enough to raise concerns about what will happen in the coming months. With internal factors within Germany’s economy, as well as issues that have to do with what is happening in the Eurozone, there is some validity to the fears that what was a slight increase may be the beginning of a new trend. One of the reasons for the unemployment increase in Germany has to do with changes in the manufacturing segment of the economy. Simply put, there is not much hiring going on, while some jobs have been eliminated, due to plant closures, shift cutbacks or temporary layoffs caused by falling demand for the goods produced. The losses were sufficient to create fears among German investors, who are already somewhat wary of making many changes in their portfolios, owing to the precarious financial status of some of the other nations within the EU. Coupled with concerns that there may also be cutbacks within the banking industry, employment has taken quite a beating. There are those who are advising caution when it comes to interpreting how the current shift in employment figures will impact the German economy as a whole. Alexander Koch, an economist at Munich-based UniCredit SpA felt that it is too early to place too much emphasis on what may be nothing more than a temporary and short-lived phenomenon. “The latest monthly rise in the […]

On October 31, Libya gained a new interim president that has proven to be a surprise for those watching the elections. Dr. Abel Rahim al-Keeb, a 61-year old professional with a background in education, electronics and politics was named as interim prime minister by the National Transitional Council. Born to parents living in Sabratha, al-Keeb left Libya in 1976 while maintaining ties with the country’s opposition, even providing financial support whenever possible. While abroad, al-Keeb earned a PhD, entering the world of education at the University of Alabama in the United States in 1985. In addition to joining the university as an assistant professor of electrical engineering, al-Keeb also began to produce papers for a number of academic and electrical engineering publications. By the time he was elevated to the status of professor, al-Keeb had also served as a guest lecturer at a number of colleges and universities in the United States, as well as Libya, the UAE and other nations. The opportunity to work with the Division of Electrical, Electronics and Computer Engineering at the American University of Sharjah in the UAE led to al-Keeb leaving his tenured position with the University of Alabama in 1999, remaining with the division through 2001. Since then, he has also worked with the Petroleum Institute in the UAE, relinquishing that position to become the representative for Tripoli in the National Transitional Council in Libya during the summer of 2011. Al-Keeb’s goals for Libya were expressed in statements made after his election by […]

Newly elected president of Kyrgyzstan, Almazbek Atambayev, has made it clear that there is no desire to renew the lease on the US military base located in Bishnek when it expires in 2014. While past leaders, including Kermanbek S. Bakiyev, also balked at continuing to allow an American base to operate in the country, negotiations were successful to keep it open during his time in office. Whether or not the position of the new president will change between now and the end of the current lease remains to be seen. It is also no secret that Russian Premiere, Vladimir Putin, is not comfortable having a US base in Kyrgyzstan and there are indications that some of the reasons behind President Atamayev’s resistance to renewing the lease are due to those same concerns. They include the possibility or retaliation by US enemies that could result in harm to the country’s citizens living near the base. There is also speculation that the decision not to renew the lease has to do with an emerging trend of closer relations with Russia. Many within the government today view Russia as the most logical choice when it comes to a partner for both commerce and national security. In addition, there are no indications that a Russian military base located in the country is in any danger of being closed soon. Among the possible ways that the relationship may deepen is the trade agreement between Kyrgyzstan, Belarus, Kazakhstan and other post Soviet Union states. The agreement […]

Northern Rock, the nationalised British bank, has become on Thursday the first bailed out lender in the UK to be sold back to the private sector, according to the treasury. The British government has given the go-ahead for the £747m loss-making deal with Richard Branson’s Virgin Money almost four years after Northern Rock’s near collapse. The deal, which leaves taxpayers with a loss of an estimated £400m, is considered unprofitable and suggests the UK has given up on turning a profit on the bank shares it holds. As part of the contract Virgin Money agreed to make no further compulsory redundancies for at least three years, the government statement said.