Economic contagion continues, spreading fear in Europe
Tuesday, 23 November 2010
From Fazle Rashid
NEW YORK, Nov 22: The economic contagion does not seem to be healing. It continues to grow spreading fear in Europe in particular. Ireland resisting a rescue package finally relented and has agreed to apply for a package.
Ireland was trying to survive and fend for itself with strict budgetary planning and austerity measures. Ireland became the fourth European Union country after Greece, Portugal and Spain to accept the rescue package. The money that will be doled out to Ireland has not yet been fixed but it could anything between $109 billion to $123 billion.
Ireland will receive the package from a specially constituted rescue fund amounting to $1.0 trillion by the European Union and International Monetary Fund to assist Euro Zone countries drifting toward default. Bailout to Ireland will be in two parts. One will back up country's failing banks and the other to allow the government operations to run unhindered. So far there has been no agitations in Ireland because of pay cuts.
The unemployment rate in Ireland is 12 per cent.
The government will not be a hostage to the whims of the IMF and will not cede any policy sovereignty.
There have been damaging developments in many countries. The elections in Afghanistan were riddled with fraud and corruption and 1.3 million votes -- about a quarter of the whole -- have been thrown out. It speaks volumes about the pervasiveness of corruption surrounding polls in Afghanistan.
The Election Commission has so far declared void elections of 25 candidates on grounds of fraud. Thirteen of 25 are Karzai supporters including his cousin Hashmat Karzai. Karzai himself had resorted to fraud to win the presidential election.
The trouble in Iraq, another US protectorate, is brewing halting the formation of a government. The polls in Iraq were held in March. There will be several more days of delays. The government has run into severe shortage of cash and has stopped payments to widows, unemployed and other needy people. More than 49,700 American armed personnel are posted in Iraq.
Saudi Arabia, richest of the Islamic countries, will be in doldrum. King Abdullah is heading toward the US for medical treatment and Crown Price Sultan is cutting short his vacation and returning to the capital. This is the indication of preventing a power vacuum in the kingdom. Saudi Arabia has more than fifth of global oil reserve. The King is 86. The crown prince Sultan is also suffering from cancer. Saud family which founded the kingdom in 1932 will remain a " gerontocracy" unless it promotes younger princes, the NYT said.
In Japan, another US ally, the Justice Minister stepped down dealing a blow to the increasingly unpopular government of Prime Minister Naoto Kan. His government has failed to win parliament support for $60 billion stimulus package.
NEW YORK, Nov 22: The economic contagion does not seem to be healing. It continues to grow spreading fear in Europe in particular. Ireland resisting a rescue package finally relented and has agreed to apply for a package.
Ireland was trying to survive and fend for itself with strict budgetary planning and austerity measures. Ireland became the fourth European Union country after Greece, Portugal and Spain to accept the rescue package. The money that will be doled out to Ireland has not yet been fixed but it could anything between $109 billion to $123 billion.
Ireland will receive the package from a specially constituted rescue fund amounting to $1.0 trillion by the European Union and International Monetary Fund to assist Euro Zone countries drifting toward default. Bailout to Ireland will be in two parts. One will back up country's failing banks and the other to allow the government operations to run unhindered. So far there has been no agitations in Ireland because of pay cuts.
The unemployment rate in Ireland is 12 per cent.
The government will not be a hostage to the whims of the IMF and will not cede any policy sovereignty.
There have been damaging developments in many countries. The elections in Afghanistan were riddled with fraud and corruption and 1.3 million votes -- about a quarter of the whole -- have been thrown out. It speaks volumes about the pervasiveness of corruption surrounding polls in Afghanistan.
The Election Commission has so far declared void elections of 25 candidates on grounds of fraud. Thirteen of 25 are Karzai supporters including his cousin Hashmat Karzai. Karzai himself had resorted to fraud to win the presidential election.
The trouble in Iraq, another US protectorate, is brewing halting the formation of a government. The polls in Iraq were held in March. There will be several more days of delays. The government has run into severe shortage of cash and has stopped payments to widows, unemployed and other needy people. More than 49,700 American armed personnel are posted in Iraq.
Saudi Arabia, richest of the Islamic countries, will be in doldrum. King Abdullah is heading toward the US for medical treatment and Crown Price Sultan is cutting short his vacation and returning to the capital. This is the indication of preventing a power vacuum in the kingdom. Saudi Arabia has more than fifth of global oil reserve. The King is 86. The crown prince Sultan is also suffering from cancer. Saud family which founded the kingdom in 1932 will remain a " gerontocracy" unless it promotes younger princes, the NYT said.
In Japan, another US ally, the Justice Minister stepped down dealing a blow to the increasingly unpopular government of Prime Minister Naoto Kan. His government has failed to win parliament support for $60 billion stimulus package.