Showing posts with label World Politics. Show all posts
Showing posts with label World Politics. Show all posts

Friday, January 2, 2009

US and Iraq, The True Picture of Today


This picutre truely tells us the current picture of US economy and Iraq. Presedent Bush's War on Terror has badly Failed leaving the whole world in a big mess. Thousands of people in Iraq and Afghanistan Killed and US itself badly Hurt by the Credit Crisis. Truely President bush just wanted wars and No peace for us. Just imagine a US President is now associated with a shoe thats what he gets in respect for all his doings

Wednesday, December 31, 2008

Israel kills and Obama Enjoys vacations

“There was no immediate comment on the Israeli air strikes on Gaza from Obama, who is vacationing with his family in Hawaii, or his staff.”
This is how our incoming President has reacted to the worst attack on the Palestinian people in 20 years – by not reacting at all.

The Bush White House, of course, has responded as we all know they would: Israel-has-the- right-to- defend itself, let the killing begin, etc., ad nauseum.
And don’t expect much better from the Obama camp. Remember how he scolded the UN for daring to even discuss the Gaza situation?:


“We have to understand why Israel is forced to do this… Israel has the right to respond while seeking to minimize any impact on civilians. The Security Council should clearly and unequivocally condemn the rocket attacks… If it cannot bring itself to make these common sense points, I urge you to ensure that it does not speak at all.”

With his silence – or, at least, his very delayed reaction – it seems clear that Obama is taking his own advice. Even as Israel takes the possibility of a new page in the Israeli-Palestinian conflict off the agenda, and sabotages all his brave talk about a renewed US diplomatic effort, the great “liberal” hope is apparently tongue-tied. And when he finally speaks, “progressives” should prepare for the worst: after all, this is someone who endorsed the Israeli re-invasion of Lebanon.

The Israeli-Palestinian “peace process”? The Israelis, for their part, are having none of it – and neither is our future President.

Economic slump sends condom sales soaring in UK


London: Despite global credit crunch, condom sales in the UK have shot up as affected couples prefer to spend their nights within the four walls.


While Durex saw a 10 per cent rise in its sales generating £126.4 million in the six months to September 30, Internet retailer Ocado recorded a staggering 60 per cent growth in sales.


Jason Gissing, finance director, accorded the reason to more and more couples’ decision to spend nights in with some not being able to afford having kids, reports the Sun.


While France, Eastern Europe, Russia and China have witnessed a similar sales shoot, Asda too reported condoms sales rising up to nine percent while pregnancy tests shot up by as much as 20 per cent.


A spokesman said: “We’ve noticed a real uplift in condom sales recently. Our conclusion is that people are staying in more and romancing rather than getting a table for two at a restaurant.


“Further proof is our tea light candles are up 50 per cent, champagne 20 per cent and oysters eight per cent and slippers and dressing gowns 22 per cent.”

Baby dipped into boiling water as part of ritual


BIJAPUR: A three-month-old infant was dunked into a vessel full of boiling water and lifted out, in a mysterious religious ritual by a couple at Jumalapur village in Bijapur district.

The horrifying act drew shocked gasps from the public and media persons gathered, but not as much as a whimper from the baby. She appeared fine.

The parents looked unafraid, and in fact, were happy that they were carrying out the ritual, held during the festival of Balabhim near Talikot town on Friday.

The story goes like this: Prabhavati and Sanganagouda of Navadagi village near Talikot town married a few years ago, but had no children. Fed up, the disappointed couple prayed that their wish be fulfilled.

Hanumantray Hugar, priest of Balabhim (Anjaneya) temple of Jumalapur village had uttered to them, presumably speaking on behalf of the Almighty: "I will give two issues to you, out of which one will be taken by self. Another should be dipped in boiling water as a religious ritual".

In due course, the first baby was born, but died early. The second one was born within a year, and the ritual was performed. Whether this is blind belief or a challenge to science is not known. But the baby is safe and healthy, even after its appalling experience.

Source

New fraud on internet using Saddam Hussein’s treasure?

Well just now I get this mail which I straightaway think is fraud. But what is interesting is that the URL used in the mail is a genuine one dated back in 2003. I do find that a lot of people (through newspaper reports), perhaps newbies on the internet getting lured by such spam/scam mails… Here it goes…

Dear Friend, Good day to you, My name is JAMES RESTO. I am an American soldier serving in the military with the Third Infantry Division in Iraq.My Superior and I currently moved some funds belonging to Saddam Hussein,to the tune of $10,000,000.00 (Ten million US dollars) this money is being kept in a secured place.Please check the below web link to read more about the cause of the event: http://news.bbc.co.uk/2/hi/middle_east/2988455.stm Basically since we are working under the Government we cannot keep these funds,My Superior and I need a good partner, someone we can trust to actualise this venture.Due to the amount of money involved and for private and confidential reasons we are transferring it through a Diplomatic Courrier Services to your location,which means it is 100% safe and secured. Your primary assignment is to stand as our contact during the process time of tranffering the fund and to provide a secured place in your location.We garauntee there is no risk involved in this. If you are interested to serve reply to my private email below with effective immediately to discuss your benefits and furnish you with more details. Sgt.JAMES RESTO sgtjames.resto@Safe-mail.net

Tuesday, December 30, 2008

George Bush Hit in Face 50m Times

Alex Tew, creator of the Million Dollar homepage, has a new web hit on his hands, after creating online game "Sock and Awe" in homage to the Iraqi journalist who threw a pair of shoes at US President George Bush.

The objective of the game is to hit George Bush in the face with a carefully aimed shoe as he ducks and dives around the screen. So far, 47,171,895 shoes have successfully hit Bush in the face.

Iraqi reporter Muntazer al-Zaidi hurled two shoes at the US president during a press conference on December 14.

Sock And Awe Bush shoe game

24-year-old London web designer Tew created the site and swiftly sold it on eBay for £5,215. The buyer was a company called Fubra, which put adverts on the site, and claims it quickly made its money back.

"We built SockandAwe.com just for fun (and partly as a promo for our start-up, PopJam) but had no idea it would become quite so popular. So, now we are selling it because a) we don't really know what to do with it, b) we can recover some of the hosting costs (plus pizza and beer costs!), and c) the money will be useful for our little four-man start-up," Tew wrote on the eBay auction page.

"It went explosively viral around the world and we didn't really expect it to do that," he said.

"We've spent the last three days trying to keep the servers alive and we're meant to be working on our other main startup PopJam. So we whacked it on eBay," he added.

Tew supposedly made a million dollars with his Million Dollar homepage.

Goerge Bush shoe face hit game

The top 10 Bush-whacking countries are:

1. United States
2. France
3. Australia
4. United Arab Emirates
5. Saudi Arabia
6. Turkey
7. Egypt
8. United Kingdom
9. Germany
10. Pakistan

Sunday, December 28, 2008

Deaths in Israel airstrike mounts ( Now who is the real terrorist and where is Bushs Terrorists Policy )

As instructed by its political leadership, the Israeli army continued its military offensive against the Gaza Strip and shelled further targets raising the number of deaths among the residents to 228, and at least 700 residents were wounded, dozens seriously.

The Qatar-based news Agency said that the simultaneous and ongoing Israeli strikes also targeted a mosque, the Palestinian Ministry of Detainees, and dozens of civilian homes and facilities.

At least 40 security centers were simultaneously hit; some centers were repeatedly hit which increased the number of casualties as the residents and medics rushed to evacuate the wounded and the casualties before the Israeli force struck the same targets again

AL Shifa hospital in Gaza, the main hospital in central Gaza, is overloaded with killed and wounded residents. Dr. Hasan Khalaf, head of the hospital, said that the hospital had to use some ordinary rooms as primitive intensive care units due to the large number of injuries.

Is everyone Sleeping Now ? 228 people killed 750 wounded where is everyone now ? Innocent people are killed by the Israel now no one using hard words against them ? No one threatening them to stop the Air strikes and these killings. My question to all the readers who is the real terrorist ? Are these killings justified ? People and Media Talked about the Mumbai Attacks day and night but they never talk of what is happening in the Gaza strip.

People talk of peace and this is the peace given to the people of Gaza. My question to the United States and President Bush why don't you stop Israel ? There is so much i want to write but what is the use

Saturday, December 27, 2008

US giving Viagra of Afghans

The Afghan chieftain looked older than his 60-odd years, and his bearded face bore the creases of a man burdened with duties as tribal patriarch and husband to four younger women. His visitor, a CIA officer, saw an opportunity, and reached into his bag for a small gift.

Four blue pills. Viagra.

"Take one of these. You'll love it," the officer said. Compliments of Uncle Sam.

The enticement worked. The officer, who described the encounter, returned four days later to an enthusiastic reception. The grinning chief offered up a bonanza of information about Taliban movements and supply routes -- followed by a request for more pills.

For U.S. intelligence officials, this is how some crucial battles in Afghanistan are fought and won. While the CIA has a long history of buying information with cash, the growing Taliban insurgency has prompted the use of novel incentives and creative bargaining to gain support in some of the country's roughest neighborhoods, according to officials directly involved in such operations.

In their efforts to win over notoriously fickle warlords and chieftains, the officials say, the agency's operatives have used a variety of personal services. These include pocketknives and tools, medicine or surgeries for ailing family members, toys and school equipment, tooth extractions, travel visas, and, occasionally, pharmaceutical enhancements for aging patriarchs with slumping libidos, the officials said.

"Whatever it takes to make friends and influence people -- whether it's building a school or handing out Viagra," said one longtime agency operative and veteran of several Afghanistan tours. Like other field officers interviewed for this article, he spoke on the condition of anonymity when describing tactics and operations that are largely classified.

Officials say these inducements are necessary in Afghanistan, a country where warlords and tribal leaders expect to be paid for their cooperation, and where, for some, switching sides can be as easy as changing tunics. If the Americans don't offer incentives, there are others who will, including Taliban commanders, drug dealers and even Iranian agents in the region.

The usual bribes of choice -- cash and weapons -- aren't always the best options, Afghanistan veterans say. Guns too often fall into the wrong hands, they say, and showy gifts such as money, jewelry and cars tend to draw unwanted attention.

"If you give an asset $1,000, he'll go out and buy the shiniest junk he can find, and it will be apparent that he has suddenly come into a lot of money from someone," said Jamie Smith, a veteran of CIA covert operations in Afghanistan and now chief executive of SCG International, a private security and intelligence company. "Even if he doesn't get killed, he becomes ineffective as an informant because everyone knows where he got it."

The key, Smith said, is to find a way to meet the informant's personal needs in a way that keeps him firmly on your side but leaves little or no visible trace.

"You're trying to bridge a gap between people living in the 18th century and people coming in from the 21st century," Smith said, "so you look for those common things in the form of material aid that motivate people everywhere."

Among the world's intelligence agencies, there's a long tradition of using sex as a motivator. Robert Baer, a retired CIA officer and author of several books on intelligence, noted that the Soviet spy service was notorious for using attractive women as bait when seeking to turn foreign diplomats into informants.

"The KGB has always used 'honey traps,' and it works," Baer said. For American officers, a more common practice was to offer medical care for potential informants and their loved ones, he said. "I remember one guy we offered an option on a heart bypass," Baer said.

For some U.S. operatives in Afghanistan, Western drugs such as Viagra were just part of a long list of enticements available for use in special cases. Two veteran officers familiar with such practices said Viagra was offered rarely, and only to older tribal officials for whom the drug would hold special appeal. While such sexual performance drugs are generally unavailable in the remote areas where the agency's teams operated, they have been sold in some Kabul street markets since at least 2003 and were known by reputation elsewhere.

"You didn't hand it out to younger guys, but it could be a silver bullet to make connections to the older ones," said one retired operative familiar with the drug's use in Afghanistan. Afghan tribal leaders often had four wives -- the maximum number allowed by the Koran -- and aging village patriarchs were easily sold on the utility of a pill that could "put them back in an authoritative position," the official said.


Both officials who described the use of Viagra declined to discuss details such as dates and locations, citing both safety and classification concerns.

The CIA declined to comment on methods used in clandestine operations. One senior U.S. intelligence official familiar with the agency's work in Afghanistan said the clandestine teams were trained to be "resourceful and agile" and to use tactics "consistent with the laws of our country."

"They learn the landscape, get to know the players, and adjust to the operating environment, no matter where it is," the official said. "They think out of the box, take risks, and do what's necessary to get the job done."

Not everyone in Afghanistan's hinterlands had heard of the drug, leading to some awkward encounters when Americans delicately attempted to explain its effects, taking care not to offend their hosts' religious sensitivities.

Such was the case with the 60-year-old chieftain who received the four pills from a U.S. operative. According to the retired operative who was there, the man was a clan leader in southern Afghanistan who had been wary of Americans -- neither supportive nor actively opposed. The man had extensive knowledge of the region and his village controlled key passages through the area. U.S. forces needed his cooperation and worked hard to win it, the retired operative said.

After a long conversation through an interpreter, the retired operator began to probe for ways to win the man's loyalty. A discussion of the man's family and many wives provided inspiration. Once it was established that the man was in good health, the pills were offered and accepted.

Four days later, when the Americans returned, the gift had worked its magic, the operative recalled.

"He came up to us beaming," the official said. "He said, 'You are a great man.' "

"And after that we could do whatever we wanted in his area."

Friday, December 26, 2008

Bush's $1 Trillion War on Terror: Even Costlier Than Expected

The news that President Bush's war on terror will soon have cost the U.S. taxpayer $1 trillion — and counting — is unlikely to spread much Christmas cheer in these tough economic times. A trio of recent reports — none by the Bush Administration — suggests that sometime early in the Obama presidency, spending on the wars started since 9/11 will pass the trillion-dollar mark. Even after adjusting for inflation, that's four times more than America spent fighting World War I, and more than 10 times the cost of 1991's Persian Gulf War (90 percent of which was paid for by U.S. allies). The war on terror looks set to surpass the cost the Korean and Vietnam wars combined, to be topped only by World War II's price tag of $3.5 trillion.

The cost of sending a single soldier to fight for a year in Afghanistanor Iraq is about $775,000 — three times more than in other recent wars, says a new report from the private but authoritative Center for Strategic and Budgetary Assessments. A large chunk of the increase is a result of the Administration cramming new military hardware into the emergency budget bills it has been using to pay for the wars. (See pictures of U.S. troops in Iraq)

These costs, of course, pale alongside the price paid by the nearly 5,000 U.S. troops who have lost their lives in the conflicts — not to mention the wounded — and the families of all the casualties. And President Bush insists that their sacrifice, and the expenditure on the wars, has helped prevent a recurrence of 9/11. "We could not afford to wait for the terrorists to attack again," he said last week at the Army War College. "So we launched a global campaign to take the fight to the terrorists abroad, to dismantle their networks, to dry up their financing and find their leaders and bring them to justice."

But many Americans may suffer a moment of sticker shock from the conclusions of the CSBA report, and similar assessments from the Government Accounting Office and Congressional Research Service, which make clear that the nearly $1 trillion already spent is only a down payment on the war's long-term costs. The trillion-dollare figure does not, for example, include long-term health care for veterans, thousands of whom have suffered crippling wounds, or the interest payments on the money borrowed by the Federal government to fund the war. The bottom lines of the three assessments vary: The CSBA study says $904 billion has been spent so far, while the GAO says the Pentagon alone has spent $808 billion through last September. The CRS study says the wars have cost $864 billion, but it didn't factor inflation into its calculations.

Sifting through Pentagon data, the CSBA study breaks down the total cost for the war on terror as $687 billion for Iraq, $184 billion for Afghanistan, and $33 billion for homeland security. By 2018, depending on how many U.S. troops remain in Afghanistan and Iraq, the total cost is projected likely to be between $1.3 trillion and $1.7 trillion. On the safe assumption that the wars are being waged with borrowed money, interest payments raise the cost by an additional $600 billion through 2018.

Shortly before the Iraq war began, White House economic adviser Larry Lindsey earned a rebuke from within the Administration when he said the war could cost as much as $200 billion. "It's not knowable what a war or conflict like that would cost," Defense Secretary Don Rumsfeld said. "You don't know if it's going to last two days or two weeks or two months. It certainly isn't going to last two years."

According to the CSBA study, the Administration has fudged the war's true costs in two ways: Borrowing money to fund the wars is one way of conducting it on the cheap, at least in the short term. But just as pernicious has been the Administration's novel way of budgeting for them. Previous wars were funded through the annual appropriations process, with emergency spending — which gets far less congressional scrutiny — only used for the initial stages of a conflict. But the Bush Administration relied on such supplemental appropriations to fund the wars until 2008, seven years after invading Afghanistan and five years after storming Iraq.

"For these wars we have relied on supplemental appropriations for far longer than in the case of past conflicts," says Steven Kosiak of the CSBA, one of Washington's top defense-budget analysts. "Likewise, we have relied on borrowing to cover more of these costs than we have in earlier wars —which will likely increase the ultimate price we have to pay." That refusal to spell out the full cost can lead to unwise spending increases elsewhere in the federal budget or unwarranted tax cuts. "A sound budgeting process forces policymakers to recognize the true costs of their policy choices," Kosiak adds. "Not only did we not raise taxes, we cut taxes and significantly expanded spending."

The bottom line: Bush's projections of future defense spending "substantially understate" just how much money it will take to run Obama's Pentagon, Kosiak says in his report. Luckily, Defense Secretary Robert Gates plans to hang around to try to iron out the problem.

Tuesday, December 23, 2008

President Bush Farewell Party

A scene of what will happen at the Farewell Party of President Bush

During rising inflation, women are the first to suffer says study

Skyrocketing prices for food and fuel have pushed more than 130 million poor people across parts of Africa, Asia and Latin America deeper into poverty in the past year, and guess who are the "hungriest" and "skinniest" victims? Women. Malnutrition among females is emerging as a "hidden consequence" of the food crisis, reports Kevin Sullivan for the Washington Post. Sullivan's focus is the African nation of Burkina Faso, where he follows the life of a woman named Fanta Lingani, who starts her backbreaking streetsweeping job at 4:30 am and makes $10 a month.

On her way to the market, Lingani explained the ugly math: A year ago, she could feed her entire family a nutritious meal of meat and vegetables and peanut sauce for about 75 cents. But now the family gets much lower-quality food for twice the price … "When the children ask for food, we have to give it to them," she said. "We're mothers."

It's not just an economic problem; it's also cultural. Shopping and cooking, aka making sure the family has food, is "the job of women," Lingani's husband, a retired police officer, says. He has three wives. One, who is nearly blind, can't do chores. Lingani and the other working wife each give part of their salary to their husband, and he gets a bowl of food that is roughly the same size as one that the two wives and eight small grandchildren share. (The food is dried fish and baobab leaves flavored with potash, a paste made by boiling down water strained through ashes.)

A recent study has shown that people in Burkina Faso spend 75% of their income on food. Pregnant women and young mothers sacrifice medical care; some turn to prostitution to pay for food. Families who can't pay for school and school clothes take girls out of school. There's no upside here people, just something to think about when we're complaining about the price of Starbucks or gas.

Monday, December 22, 2008

Tata Rescues Jaguar, Injects Millions to Prevent Cashflow crisis

India's Tata Motors, which owns Jaguar Land Rover, has agreed to inject "tens of millions" of pounds into the company to tide it over while the government mulls a bailout, reports said on Monday.

The Financial Times, quoting people close to Tata, said the emergency aid was intended to prevent an immediate cash flow crisis.

It comes on top of "hundreds of millions" of working capital provided since Tata bought Jaguar Land Rover from Ford in March, the paper said.

Business Secretary Lord Peter Mandelson said last week that the government has talked to Jaguar Land Rover about a possible bailout as the car company struggles with the economic downturn, but no decisions had been taken.

The FT said Tata still expects the taxpayer to provide longer-term support for Jaguar Land Rover, in order to protect thousands of jobs.

Pressure is growing on the government to act to save its car manufacturers after US President George W. Bush unveiled a 13.4 billion dollar rescue loan for carmakers General Motors and Chrysler on Friday.

Sunday, December 21, 2008

Mumbai drama, hotel guests testify to What actually happened

Hotel guest tell us the true story as to what happened when they were kept as hostages. The stories craft by the Indian electronic and print media were absolutely absurd from the very beginning. Now we have it that the guests who had trapped themselves inside hotel rooms for safety were actually instructed by policemen to leave the building while the fighting raged on.

Several other things have been left unanswered, including the gross failure of Indian security and intelligence agencies that such a big terrorist attack happened right under their nose, in a country aspiring to become a regional superpower. All these questions that raise in one’s mind have been discussed before here and at several other forums.

So much so that the Indian minister for minorities had to resign for raising the issue of Mr. Karkare’s suspicious killing at an unknown location on the same day - the senior Indian policeman who had exposed the masterminds of the Samjhota express bombings and held a Hindu serving Indian army Colonel for the same.


Yet India is still pushing forward with its absurd, concocted story of the deadly Mumbai terror attacks holding Pakistan responsible, while all evidence points towards it as being a staged drama by Indian Hindu extremists who have penetrated Indian state machinery in large numbers.

Following is the BBC news report, in which guests at the Taj hotel have testified against the Indian police..

By Adam Mynott
BBC News, Mumbai
Guests trapped in a Mumbai hotel seized by gunmen last month have told the BBC they were given instructions by police that may have led to more people dying.

Police told a group hiding in the Taj Mahal Palace hotel that it was safe to leave the building, a survivor said.

But members of the group were shot and killed by militant gunmen as they were making their way out.

The senior policeman in charge of the operation in the hotel has denied the allegations against his officers.

‘Suspicious’

A prominent Mumbai gynaecologist, Dr Prashant Mangeshikar, was trapped in the Taj Mahal hotel along with hundreds of other guests as gunmen stormed into the building, firing indiscriminately.

Terrified, he and others barricaded themselves into a room and waited.

Eventually, in the early hours of the morning, police officers made it through to where they were hiding and told people it was safe to leave the hotel because the gunmen were cornered on another floor.

Some went ahead but Dr Mangeshikar held back.

“I was a little suspicious that the police were actually sending these guys down a different route where the terrorists were supposed to be,” he said.

“I refused to move away and the people who ran ahead of me, about 20 or 30 of them, all of them died.”

A dress designer from the city says her aunt was shot dead and her cousin seriously wounded because they followed police instructions to try to leave.

The designer, Shilpa, described the police conduct as disgraceful.

They had no right, she said, to risk people’s lives.

The senior policeman in charge of the operation in the hotel has denied these allegations against his officers.

But they add to growing criticism of the police and how they responded to the attack in which more than 170 people were killed.

http://news.bbc.co.uk/2/hi/south_asia/7794211.stm

The move seems to be one to fuel more hatred against Pakistan by increasing the number of deaths as a result of this barbaric act.

Subaru pull out from World Car Rally

TOKYO: Subaru team has become the latest to withdraw from next year's World Rally Championship as the economic downturn continues to hit motorsport.

Subaru said it would withdraw from the FIA World Rally Championship (WRC) at the end of the 2008 season, citing a "dramatically changed" business environment.

Suzuki announced its withdrawal from motor sport and Honda last week said it would sell its F1 racing team.

Subaru has won three manufacturer's championship titles and three driver's championship titles in its history of rally racing. FHI said this had helped enhance the value of the Subaru brand as well as expand sales worldwide.

Source: http://www.geo.tv/12-17-2008/30845.htm

Saturday, December 20, 2008

New York Governor plans sales tax on digital downloads

New York State - New Yorkers may very soon have to pay more money to download music and other digital content than much of the rest of the country. The state’s governor David Patterson proposed a sales tax on entertainment that covers all downloaded digital content.

This proposal has been dubbed “iTax” or “iPod tax” by many, and is one of the 137 new taxes Patterson unveiled Wednesday as part of his 2009-2010 budget. He hopes to close a $15.4 billion shortcoming for the state, which is the largest New York, has ever seen.

New York’s budget website indicates the tax would impose both state and local sales taxes on the purchase of any sort of digital content in an attempt to close a gap and “achieve tax parity” with other sources, like sales tax on CDs and DVDs. The tax would be applied to any entertainment service that is delivered electronically including photos, games, software, movies, and downloaded music.

New York would apply this tax to everything purchased online- whether the sale originated from a store, or was downloaded.

If the bill is passed, the tax would aid in the generation of an additional $15 million in tax revenues for the 2009-2010 budget period, and $20 million for the 2010-2011 budget. Currently the New York State sales tax is 4%. Many cities charge an additional local sales tax.

If New York chooses to add sales tax to downloads it would make it the 21st state to adopt this kind of tax.

Since 1998, continued moratoriums against a related form of general “Internet Tax” have been passed, preventing additional taxes levied by purchases made online. The Internet Tax Freedom Extension Act of 2007 (or download PDF) currently extends the moratorium until 2014. Many advocates are calling for an end to Internet sales taxes completely, and not just continuing moratoriums.

U.S 1929 Great Depression Vs 2008 Financial, Housing, Credit Crisis

Great Depression happened in 1929. It took over 10 years to cure.

Effects of depression:
13 million people became unemployed.
Industrial production fell by nearly 45% between the years 1929 and 1932.
Home-building dropped by 80% between the years 1929 and 1932.
From the years 1929 to 1932, about 5000 banks went out of business.

That’s where when the buyer ran out of the market…. and this is what happening now in 2008. Investors now are panic and cash out from stock market.

As mass production has to be accompanied by mass consumption, mass consumption, in turn, implies a distribution of wealth - not of existing wealth, but of wealth as it is currently produced - to provide men with buying power equal to the amount of goods and services offered by the nation’s economic machinery.
Instead of achieving that kind of distribution, a giant suction pump had by 1929-30 drawn into a few hands an increasing portion of currently produced wealth. This served them as capital accumulations. But by taking purchasing power out of the hands of mass consumers, the savers denied to themselves the kind of effective demand for their products that would justify a reinvestment of their capital accumulations in new plants. In consequence, as in a poker game where the chips were concentrated in fewer and fewer hands, the other fellows could stay in the game only by borrowing. When their credit ran out, the game stopped.

Debt is seen as one of the causes of the Great Depression, particularly in the United States. Macroeconomists including Ben Bernanke, the current chairman of the U.S. Federal Reserve Bank, have revived the debt-deflation view of the Great Depression originated by Arthur Cecil Pigou and Irving Fisher:in the 1920s, American consumers and businesses relied on cheap credit, the former to purchase consumer goods such as automobiles and furniture, and the latter for capital investment to increase production. This fueled strong short-term growth but created consumer and commercial debt. People and businesses who were deeply in debt when price deflation occurred or demand for their product decreased often risked default. Many drastically cut current spending to keep up time payments, thus lowering demand for new products. Businesses began to fail as construction work and factory orders plunged.

Massive layoffs occurred, resulting in US unemployment rates of over 25% by 1933. Banks which had financed this debt began to fail as debtors defaulted on debt and depositors attempted to withdraw their deposits en masse, triggering multiple bank runs. Government guarantees and Federal Reserve banking regulations to prevent such panics were ineffective or not used. Bank failures led to the loss of billions of dollars in assets.Outstanding debts became heavier, because prices and incomes fell by 20-50% but the debts remained at the same dollar amount. After the panic of 1929, and during the first 10 months of 1930, 744 US banks failed. (In all, 9,000 banks failed during the 1930s). By 1933, depositors had lost $140 billion in deposits.

Bank failures snowballed as desperate bankers called in loans which the borrowers did not have time or money to repay. With future profits looking poor, capital investment and construction slowed or completely ceased. In the face of bad loans and worsening future prospects, the surviving banks became even more conservative in their lending. Banks built up their capital reserves and made fewer loans, which intensified deflationary pressures. A vicious cycle developed and the downward spiral accelerated. This kind of self-aggravating process may have turned a 1930 recession into a 1933 great depression.

Federal Reserve and money supply

Monetarists, including Milton Friedman and current Federal Reserve System chairman Ben Bernanke, argue that the Great Depression was caused by monetary contraction, the consequence of poor policymaking by the American Federal Reserve System and continuous crisis in the banking system. In this view, the Federal Reserve, by not acting, allowed the money supply as measured by the M2 to shrink by one-third from 1929 to 1933. Friedman argued that the downward turn in the economy, starting with the stock market crash, would have been just another recession. The problem was that some large, public bank failures, particularly that of the Bank of the United States, produced panic and widespread runs on local banks, and that the Federal Reserve sat idly by while banks fell. He claimed that, if the Fed had provided emergency lending to these key banks, or simply bought government bonds on the open market to provide liquidity and increase the quantity of money after the key banks fell, all the rest of the banks would not have fallen after the large ones did, and the money supply would not have fallen as far and as fast as it did. With significantly less money to go around, businessmen could not get new loans and could not even get their old loans renewed, forcing many to stop investing. This interpretation blames the Federal Reserve for inaction, especially the New York branch.

One reason why the Federal Reserve did not act to limit the decline of the money supply was regulation. At that time the amount of credit the Federal Reserve could issue was limited by laws which required partial gold backing of that credit. By the late 1920s the Federal Reserve had almost hit the limit of allowable credit that could be backed by the gold in its possession. This credit was in the form of Federal Reserve demand notes. Since a “promise of gold” is not as good as “gold in the hand”, during the bank panics a portion of those demand notes were redeemed for Federal Reserve gold. Since the Federal Reserve had hit its limit on allowable credit, any reduction in gold in its vaults had to be accompanied by a greater reduction in credit. Several years into the Great Depression, the private ownership of gold was declared illegal, reducing the pressure on Federal Reserve gold.

Recovery part….

The massive rearmament policies to counter the threat from Nazi Germany helped stimulate the economies of Europe in 1937-39. By 1937, unemployment in Britain had fallen to 1.5 million. The mobilization of manpower following the outbreak of war in 1939 finally ended unemployment.

In the United States, the massive war spending doubled the GNP, either masking the effects of the Depression or essentially ending the Depression. Businessmen ignored the mounting national debt and heavy new taxes, redoubling their efforts for greater output to take advantage of generous government contracts. Productivity soared: most people worked overtime and gave up leisure activities to make money after so many hard years. People accepted rationing and price controls for the first time as a way of expressing their support for the war effort. Cost-plus pricing in munitions contracts guaranteed businesses a profit no matter how many mediocre workers they employed or how inefficient the techniques they used. The demand was for a vast quantity of war supplies as soon as possible, regardless of cost. Businesses hired every person in sight, even driving sound trucks up and down city streets begging people to apply for jobs. New workers were needed to replace the 11 million working-age men serving in the military. These events magnified the role of the federal government in the national economy. In 1929, federal expenditures accounted for only 3% of GNP. Between 1933 and 1939, federal expenditure tripled, and Roosevelt’s critics charged that he was turning America into a socialist state. However, spending on the New Deal was far smaller than on the war effort.

Global Warming affect Comming Sooner in US

A report released at the annual meeting of the American Geophysical Union on December 16 provides new insights on the potential for abrupt climate change and the effects it could have on the United States, identifying key concerns that include faster-than- expected loss of sea ice, rising sea levels and a possibly permanent state of drought in the American Southwest.

The American West is likely to become more arid in the future due to global warming.



The analysis is one of 21 of its type developed by a number of academic and government agency researchers for the U.S. Climate Change Science Program. The work incorporates the latest scientific data more than any previous reports, experts say, including the 2007 Intergovernmental Panel on Climate Change.


While concluding that some projections of the impact of climate change have actually been too conservative – as in the case of glacier and ice sheets that are moving and decaying faster than predicted – others may not pose as immediate a threat as some scenarios had projected, such as the rapid releases of methane or dramatic shifts in the ocean current patterns that help keep Europe warm.


"We simulate the future changes with our climate models, but those models have not always incorporated some of our latest data and observations, " said Peter Clark, a professor of geosciences at Oregon State University and a lead author on the report. "We now have data on glaciers moving faster, ice shelves collapsing and other climate trends emerging that allow us to improve the accuracy of some of our future projections. "


Some of the changes that now appear both more immediate and more certain, the report concludes, are rapid changes at the edges of the Greenland and West Antarctic ice sheets, loss of sea ice that exceeds projections by earlier models, and hydroclimatic changes over North America and the global subtropics that will likely intensify and persist due to future greenhouse warming.


"Our report finds that drying is likely to extend poleward into the American West, increasing the likelihood of severe and persistent drought there in the future," Clark said. "If the models are accurate, it appears this has already begun. The possibility that the Southwest may be entering a permanent drought state is not yet widely appreciated. "



Climate change, experts say, has happened repeatedly in Earth's history and is generally believed to be very slow and take place over hundreds or thousands of years. However, at times in the past, climate has also changed surprisingly quickly, on the order of decades.


"Abrupt climate change presents potential risks for society that are poorly understood," researchers wrote in the report.



This study, in particular, looked at four mechanisms for abrupt climate change that have taken place prehistorically, and evaluated the level of risks they pose today. These mechanisms are rapid changes in glaciers, ice sheets and sea level; widespread changes to the hydrologic cycle; abrupt changes in the "Atlantic Meridional Overturning Circulation, " or AMOC, an ocean current pattern; and rapid release to the atmosphere of methane trapped in permafrost or on continental margins.

What happens when recession kicks in















These are some of the major brands getting their share of Recission. If this can happen to such large brands one can image what will be the state of smaller brands.

Monday, December 15, 2008

President George Bush Gets Shoe Thrown at Him



President George W. Bush made a surprise appearance in Iraq today and it's safe to say he was not welcomed with open arms. During a news conference with the Prime Minister of Iraq, a reporter thought it would be a good idea to throw both his shoes at Bush. Bush dodged both shoes, so incase you're wondering none of them hit him. While he was throwing his shoes, he was yelling "This is the end." According to Bloomberg, throwing a shoe in the Arab culture is a sign of disrespect. "This is from the widows, the orphans and those who were killed in Iraq," said Muntadar al-Zeidi, a correspondent for Al-Baghdadia television, an Iraqi-owned station based in Cairo, Egypt. All the security guys attacked the protester and no one will probably ever see him again. After Bush got attacked by the flying shoes he joked, “I’m OK...All I can report is it is a size 10.” Watch the video of Bush being attacked by the shoes. He's got a quick reflex.

Sunday, December 14, 2008

Indian infiltration, What was the purpose ?

KARACHI: Senior analyst Kamran Khan said that Indian jet planes violated Pakistan air spaces twice on Saturday in Kashmir and Lahore areas while Planes of Pakistan Air Force (PAF), which were already on high alert, quickly came into action and forced the India’s fighter jets to leave Pakistan’s air spaces.

He said that this Indian action reveals its nefarious design against the sovereignty of Pakistan and termed, “Indian version that it violated Pakistan air spaces by mistakes, a lamb excuse”, as he maintained, “Mistake can be committed once not twice.”

He said that on both occasions, Indian fighter jets were equipped with warheads, which means they had some wicked intensions against our land.

Kamran Khan demanded Indian government to take strict notice of the incident at once, if it is a mistake, as he feared that this violation could have turned worst keeping in view growing tension between India and Pakistan in the context of Mumbai carnage.

He said that this violation from Indian Air Force actually aimed at challenging Pakistan’s readiness to defend its territory.

He also said that this violation indicates towards the failure of Indian Intelligence and provoking statements of Indian politicians due to Mumbai mayhem and it seems Indian government is trying to deviate the attention of Indian people from government’s failure.

Prime Minister Azad Kashmir Sardar Attique said Sunday that the violation of Pakistan air spaces by Indian fighter jets was Indian conspiracy to deviate attention of the people of both neighboring countries especially in the context of Britain Prime Minister Gordon Brown’s visit to Pakistan to ease tension.

Talking to Geo News he said that this Indian conspiracy was hatched to cancel Britain PM Brown’s visit to Pakistan. He urged the world to take strict notice of the incident and bring responsible to justice.

Federal Minister for Information and Broadcasting Sherry Rehman said Sunday that confirming the violation of Pakistan air spaces by Indian fighter jets; the Indian Air Force has said that it entered into Pakistan’s air spaces by mistake.

She said this after the media contacted her to respond on Indian jets violation of Pakistan air spaces.

Mistakes can happens once but if it happens twice then this is not called a mistake but a lame excuse.