18 June 2008
News and Comments - 06/18/08
Posted by Joy Bischoff under: What's News .
Be yourself. Everyone else is already taken. 
20 Comments so far...
Jesse Says:
18 June 2008 at 12:09 am.
Bernanke May Regret Rate Cuts as Inflation Rises, Lawson Says
June 18 (Bloomberg) — Former U.K. Chancellor of the Exchequer Nigel Lawson said Federal Reserve Chairman Ben S. Bernanke may be “regretting” the fastest pace of U.S. interest-rate cuts since 1984 as global inflation accelerates.
The Fed reduced its benchmark rate by 3.25 percentage points to 2 percent between September and April 30 to stave off a recession following the collapse of the U.S. subprime-mortgage market. The Bank of England, also facing a slowdown, cut its key rate by 0.75 percentage point to 5 percent. The European Central Bank left rates unchanged at 4 percent for a year and signaled this month it may raise them in July.
“The Bank of England has been very cautious and careful and it has been much closer to the views of the European Central Bank,” Lawson, 76, who was finance minister from 1983 to 1989 under former Prime Minister Margaret Thatcher, said in a telephone interview. “It has not gone conspicuously the way of the Fed, where I suspect that Mr. Bernanke’s now regretting it.”
http://www.bloomberg.com/apps/news?pid=20601087&sid=ap6pdzZ2xaa8&refer=home
Cavetrollhead Says:
18 June 2008 at 1:51 am.
Charges Against Haditha Marine Dismissed
Tuesday, June 17, 2008 2:41 PM
By: Philip V. Brennan Article Font Size
A military judge has dismissed all charges against Lt. Col. Jeffrey Chessani on the grounds of unlawful command influence arising out of the infamous 2005 Haditha incident.
Judge Steven Folsom blistered the prosecution’s case in an opinion he read from the bench that lasted an hour.
The dismissal allows the prosecution to refile charges on appeal and start the whole case over again, which is unlikely to occur.
Richard Thompson, president and chief counsel of the Thomas More Law Center, stated, “We are all grateful for the judge’s ruling today. He truly was the ‘last sentinel’ to guard against unlawful command influence.”
Meanwhile, Chessani’s official 2006 Combat Fitness Report declared him “a superb leader, who knows his men, knows the enemy, knows his business,” and recommended him for promotion. A reviewing major general added that Chessani has “unlimited potential and value to the Marine Corps,” and also recommended him for promotion.
The following quotes are excerpts from Chessani’s Combat Fitness Report (a required annual evaluation of a Marine officer’s performance) prepared by his superiors for the period of September 2005 to February 2006 (including the date of the incident):
# “Leads Marines from front in every operation. Demonstrates moral courage every day.”
# “Doesn’t hesitate to report bad news fast or contest unrealistic plans/poor concepts. Despite the complexity and size of his AO [area of operations], he always maintains a calm, cool demeanor.”
# “Gets the job done to an exceedingly high standard.”
http://www.newsmax.com/newsfront/haditha_chessani/2008/06/17/105261.html?s=al&promo_code=6477-1
Matt Says:
18 June 2008 at 10:05 am.
I wonder where Cameron. This is his job and he should come back and do it. Anyway, this is looking bad for food prices.
Mississippi River levee breaks, more at risk
FORT MADISON, Iowa (Reuters) - The swollen Mississippi River ran over the top of a levee near Meyer, Illinois, on Wednesday as floodwaters swallowed up more farmland and sent corn prices to a record high.
The U.S. Army Corps of Engineers said the latest levee break brought the total number of compromised levees to 11 on the most important U.S. inland waterway. The river overtopped the levee at 1 a.m. CDT, said spokesman Ron Fournier.
“We basically have about three dozen levee systems we’re concerned about overtopping as the river continues to rise,” he said.
The slow-rolling disaster, the worst U.S. Midwest floods for 15 years, has flooded vast sections of the U.S. farm belt.
Estimates are that 5 million acres have been ruined and will not produce a crop this year. That has sent U.S. grain and livestock soaring, along with food price inflation worries.
Matt Says:
18 June 2008 at 10:20 am.
This is big news:
Bush to Congress: Embrace energy exploration now
WASHINGTON - With gasoline topping $4 a gallon, President Bush urged Congress on Wednesday to lift its long-standing ban on offshore oil and gas drilling, saying the United States needs to increase its energy production.
“There is no excuse for delay,” the president said in a statement in the Rose Garden. With the presidential election on the horizon, Bush blamed Democratic lawmakers for opposing his energy policies and for high gasoline costs. His proposal echoed a call by Republican presidential candidate John McCain to open the Continental Shelf for exploration
“Families across the country are looking to Washington for a response,” Bush said.
He said that offshore drilling could yield up to 18 billion barrels of oil over time, although it would take years for production to start. Bush also said offshore drilling would take pressure off prices over time.
There are two prohibitions on offshore drilling, one imposed by Congress and another by executive order. Bush is not lifting the executive order, saying he wants Congress to take the first step. He said he will lift the executive ban once Congress lifts its moratorium.
Before Bush spoke, the House Appropriations Committee postponed a vote it had scheduled for Wednesday on legislation doing the opposite of what the president asked — extending Congress’ ban on offshore drilling. Lawmakers said they wanted to focus on a disaster relief bill for the battered Midwest.
Bush also proposed opening the Arctic National Wildlife Refuge for drilling, lifting restrictions on oil shale production in the Green River Basin of Colorado, Utah and Wyoming and easing the regulatory process to expand oil refining capacity.
With Americans deeply pessimistic about the economy, Bush tried to put on the onus on Congress. He acknowledged that his new proposals would take years to have a full effect, hardly the type of news that will help drivers at the gas stations now. The White House says no quick fix exists.
Still, Bush said Congress was obstructing progress — and directly contributing to consumers’ pain at the pump.
http://news.yahoo.com/s/ap/20080618/ap_on_go_pr_wh/offshore_oil
Matt Says:
18 June 2008 at 10:34 am.
This made me think of Cave’s post yesterday:
Muslims barred from picture at Obama event
Two Muslim women at Barack Obama’s rally in Detroit Monday were barred from sitting behind the podium by campaign volunteers seeking to prevent the women’s headscarves from appearing in photographs or on television with the candidate.
The campaign has apologized to the women, all Obama supporters who said they felt betrayed by their treatment at the rally.
“This is of course not the policy of the campaign. It is offensive and counter to Obama’s commitment to bring Americans together and simply not the kind of campaign we run,” said Obama spokesman Bill Burton. “We sincerely apologize for the behavior of these volunteers.”
Building a human backdrop to a political candidate, a set of faces to appear on television and in photographs, is always a delicate exercise in demographics and political correctness. Advance staffers typically pick supporters out of a crowd to reflect the candidate’s message.
When Obama won North Carolina amid questions about his ability to connect with white voters, for instance, he stood in front of a group of middle-aged white women waving small American flags. Across the aisle, a Hispanic New Hampshire Democrat, Roberto Fuentes, told Politico that he was recently asked, and declined, to contribute to the “diversity” of the crowd behind Senator John McCain at a Nashua event.
But for Obama, the old-fashioned image-making contrasts with his promise to transcend identity politics, and to embrace all elements of America. The incidents in Michigan, which has one of the largest Arab and Muslim populations in the country, also raise an aspect of his campaign that sometimes rubs Muslims the wrong way: The candidate has vigorously denied a false, viral rumor that he himself is Muslim. But the denials seem to some at times to imply that there something wrong with the faith, though Obama occasionally adds that he means no disrespect to Islam.
Benjamin Says:
18 June 2008 at 10:41 am.
Anyone else think it strange that Bush won’t lift his executive order first but wants congress to do it? That is sending mixed messages and I don’t like it.
This last article about the head scarves makes me nervous. I tend to believe Cave’s post yesterday from Israel. I think Obama was raised Muslim.
S.J. Says:
18 June 2008 at 11:10 am.
Benjamin, it is called posturing. If he really wanted it to happen he would lift the exec order. He is tied in with the globalist people who want OPEC to produce oil as a way to keep them tied to the globalist agenda.
Terrie Soberg Says:
18 June 2008 at 11:23 am.
Uh-oh, From the UK Telegraph:
RBS issues global stock and credit crash alert
By Ambrose Evans-Pritchard, International Business Editor
The Royal Bank of Scotland has advised clients to brace for a full-fledged crash in global stock and credit markets over the next three months as inflation paralyses the major central banks.
“A very nasty period is soon to be upon us - be prepared,” said Bob Janjuah, the bank’s credit strategist.
A report by the bank’s research team warns that the S&P 500 index of Wall Street equities is likely to fall by more than 300 points to around 1050 by September as “all the chickens come home to roost” from the excesses of the global boom, with contagion spreading across Europe and emerging markets.
Such a slide on world bourses would amount to one of the worst bear markets over the last century.
RBS said the iTraxx index of high-grade corporate bonds could soar to 130/150 while the “Crossover” index of lower grade corporate bonds could reach 650/700 in a renewed bout of panic on the debt markets.
“I do not think I can be much blunter. If you have to be in credit, focus on quality, short durations, non-cyclical defensive names.
“Cash is the key safe haven. This is about not losing your money, and not losing your job,” said Mr Janjuah, who became a City star after his grim warnings last year about the credit crisis proved all too accurate.
RBS expects Wall Street to rally a little further into early July before short-lived momentum from America’s fiscal boost begins to fizzle out, and the delayed effects of the oil spike inflict their damage.
“Globalisation was always going to risk putting G7 bankers into a dangerous corner at some point. We have got to that point,” he said.
US Federal Reserve and the European Central Bank both face a Hobson’s choice as workers start to lose their jobs in earnest and lenders cut off credit.
The authorities cannot respond with easy money because oil and food costs continue to push headline inflation to levels that are unsettling the markets. “The ugly spoiler is that we may need to see much lower global growth in order to get lower inflation,” he said.
“The Fed is in panic mode. The massive credibility chasms down which the Fed and maybe even the ECB will plummet when they fail to hike rates in the face of higher inflation will combine to give us a big sell-off in risky assets,” he said.
Kit Jukes, RBS’s head of debt markets, said Europe would not be immune. “Economic weakness is spreading and the latest data on consumer demand and confidence are dire. The ECB is hell-bent on raising rates.
“The political fall-out could be substantial as finance ministers from the weaker economies rail at the ECB. Wider spreads between the German Bunds and peripheral markets seem assured,” he said.
Ultimately, the bank expects the oil price spike to subside as the more powerful force of debt deflation takes hold next year.
Pickles Says:
18 June 2008 at 12:27 pm.
OH CRAP! This is not good. I’m not ready for this. Who is?
At least there is a cute baby seal up there to look at.
Cavetrollhead Says:
18 June 2008 at 2:06 pm.
Its all the white folks fault.
http://www.clintons4mccain.com/Obama1.MP3
Cavetrollhead Says:
18 June 2008 at 2:09 pm.
Thanks Terrie, I think I just wet my pants.
Hawk Says:
18 June 2008 at 2:13 pm.
Israelis, Palestinians praise Gaza truce
JERUSALEM - Palestinian militants launched at least 50 rockets and mortars from Gaza and Israel responded with airstrikes on Wednesday, just a day before a truce was set to take effect, illustrating how fragile the arrangement between Israel and Hamas would be.
After months of violence, the leaders of both sides expressed hope that truce would succeed — but made clear they have little faith in their adversaries’ commitment to the deal.
“I hope it will succeed. I believe there will be quiet in (Israel’s) south,” Israeli Prime Minister Ehud Olmert said in a speech to philanthropists. But he also said he instructed his military “to prepare for any operation, short or long, that might be necessary” if the truce breaks down.
But on Wednesday, the truce still seemed remote. the military said at least 40 rockets and 10 mortar shells exploded in Israel by nightfall, an especially high one-day total.
Islamic Jihad claimed responsibility for much of the rocket fire, saying it was avenging Israeli airstrikes that killed 10 militants in the previous two days. Israel hit back with two more airstrikes, wounding two Palestinians, according to Hamas security officials.
One of the rockets from Gaza exploded in Ilan Basherim’s greenhouse at Moshav Yesha, not far from Gaza. Even so, he was critical of the truce.
“This cease-fire will give more strength to Hamas, and they will be more violent in another six months. This is not good for Israel, and definitely not good for us,” said Basherim, 38.
http://news.yahoo.com/s/ap/20080618/ap_on_re_mi_ea/israel_palestinians
Hawk Says:
18 June 2008 at 2:14 pm.
Not happy with what the Royal Bank of Scotland had to say. I guess maybe they are right around here after all and we should put up a little food and get out of debt.
Cavetrollhead Says:
18 June 2008 at 2:17 pm.
Benjamin,
That is a good question about why Bush won’t lift the executive order first.
I might have the answer for you, but it is just a shot in the dark.
If Bush lifts the executive order first , he becomes a target first. The democrits in Congress will turn on him to get as much mileage out of it as they can. But if he is the first to issue the challenge, they are put on the defensive to give relief to us on the price of oil. If and when the Ds will respond to that pressure, to alleviate our pain, they become the first targets for environmentalists when they lift the ban on drilling.
It is pure politics and Bush wants the Republicans to come through the fight unscathed.
Hawk Says:
18 June 2008 at 2:20 pm.
Mexico freezes prices on 150 foods for 6 months
MEXICO CITY - Food manufacturers promised Mexico’s government to freeze prices on more than 150 food products Wednesday to help families cope with rising costs.
President Felipe Calderon announced that prices for goods such as cooking oil, flour, canned tuna, fruit juices, coffee, ketchup and canned tomatoes will remain fixed until Dec. 31.
“This is a measure that will positively and directly benefit the finances of millions of Mexicans,” said Calderon, flanked by representatives of Mexico’s business chambers. “This reflects the commitment of Mexican businessmen to the country and to price stability.”
The Mexican leader has blamed high food costs on rising global energy prices, soaring food demand in China and India and the use of corn for ethanol production.
http://news.yahoo.com/s/ap/20080618/ap_on_re_la_am_ca/mexico_food_crisis
Cavetrollhead Says:
18 June 2008 at 2:29 pm.
IN fact I think that Bush will lift the Executive order after the Democrits in congress refuse to do their part. Then he can squarely make them the target for our pain, and take the opportunity to point out how extreme the environmentalists’ influence is. That will be worth the environmentalists’ attack.
Cavetrollhead Says:
18 June 2008 at 2:36 pm.
Interesting Hawk,
It is a barometer for us to see this happen. In this Global economy, Mexico is a canary in the coal mine.
Saddened Says:
18 June 2008 at 4:41 pm.
At least we are having our public officials actually talk about lifting the ban on drilling. Lots of other countries are drilling all around us and taking our oil and that makes me nuts.
Benjamin Says:
18 June 2008 at 5:36 pm.
Stocks fall as financials slump, oil rises; Dow briefly dips below 12,000
NEW YORK (AP) — Wall Street sank Wednesday for the second straight day on renewed concerns about the financial sector and FedEx Corp.’s warning that weakening demand and surging fuel costs would weigh on its profits in the coming year.
The Dow Jones industrial average finished down more than 130 points, after briefly dipping below the 12,000 mark for the first time since mid-March. All three major stock indexes finished down about 1 percent, as oil and bond prices jumped.
Unease about financials arose after several worrisome developments. Fifth Third Bancorp said it plans to cut its dividend by nearly two-thirds, raise $1 billion through an offering of preferred stock and generate another $1 billion through the sale of businesses.
Benjamin Says:
18 June 2008 at 5:37 pm.
Dang, that is interesting about Mexico. We’ll keep an eye on that and see how it goes. I wonder how much food they import?
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