Iran Escalates Military Rhetoric Iran warned on Monday that it could easily close a critical Persian Gulf waterway for oil shipments and claimed possession of a new long-range naval weapon that could sink enemy ships nearly 200 miles away. It was unclear what provoked the warning, made by Iran’s Revolutionary Guards, but it followed the weekend expiration of an informal deadline for Iran to respond to incentives from world powers to curb its uranium enrichment activities. The United States, which has warships deployed in the Persian Gulf, has said new sanctions should be imposed on Iran for failing to respond to the deadline.
Housing Lenders Fear Bigger Wave of Loan Defaults The first wave of Americans to default on their home mortgages appears to be cresting, but a second, far larger one is quickly building. Homeowners with good credit are falling behind on their payments in growing numbers, even as the problems with mortgages made to people with weak, or subprime, credit are showing their first, tentative signs of leveling off after two years of spiraling defaults. The percentage of mortgages in arrears in the category of loans one rung above subprime, so-called alternative-A mortgages, quadrupled to 12 percent in April from a year earlier. Delinquencies among prime loans, which account for most of the $12 trillion market, doubled to 2.7 percent in that time.
Stagflation stifles Fed, ECB, BoE The specter of stagflation will likely keep the U.S. Federal Reserve, the European Central Bank, and the Bank of England from changing short term interest rates this week, and their hands may be tied for some time as economic growth slows but inflation remains high. The $20 per barrel decline in crude oil prices since mid-July has quieted, but not silenced, the anti-inflation rhetoric. All three central banks are on alert for any sign that high fuel and food prices are translating into higher wage demands which could set off an inflationary spiral reminiscent of the 1970s. But barring another oil price spike like the one that drove prices up by some 50 percent in the previous six months, the ECB and BoE seem content to hold borrowing costs steady through the end of the year. A Reuters poll of economists showed that most expected no change in ECB or BoE interest rates until the first quarter of 2009 at the earliest. Indeed, the next move in short term interest rates for the ECB and BoE is likely to be down, despite rising inflation rates.
The Cost of Socialism Over the past few decades, the United States has steadily evolved from a nation of ‘producers’ to one of ‘consumers’. The change has been celebrated by politicians and economists as proof of America’s arrival at the top of the global economic food chain. In reality, the development has depleted the nation of its hard-earned wealth, and has led us to the brink of ruin. But rather than encouraging a return of America’s productive energy, our government is responding to the growing economic crisis by simply trying to boost consumerism at all costs. Their strategy involves socializing losses among all citizens so that the depletion can’t be easily discerned. Now that the nation has chosen socialism as its economic salvation, it is worthwhile to examine some historic precedents. They are not encouraging. Europe, the former Soviet block and much of Africa and Asia, show vividly that socialism curbs individual freedom and enterprise, and leads inevitably toward economic decline.
Although Federal Reserve Policymakers Are Set to Meet, They Have Little Room to Maneuver U.S. Federal Reserve Chairman Ben S. Bernanke and his fellow central bank policymakers will be back in the spotlight this week as the group convenes for its monthly monetary-policy meeting. But there won’t be much to report. Although the Federal Reserve’s policymaking Federal Open Market Committee (FOMC) meets Wednesday, the group doesn’t have much room to maneuver: If the Fed cuts rates to stimulate growth, already troublesome inflation could escalate out of control. But if the FOMC raises rates to reign in inflation, the entire economy could drop into a deep-and-lingering recession.
Regulators Close Florida Bank, Others in Region May Follow $$ Federal and state regulators closed First Priority Bank of Bradenton, Fla., the eighth U.S. bank to fail this year. The Federal Deposit Insurance Corp. said First Priority's insured accounts would be acquired by SunTrust Banks Inc. through a purchase and assumption agreement. SunTrust also bought $42 million of the failed bank's assets, including cash, cash equivalents and securities. Separately, the FDIC said it reached an agreement with a unit of Beal Bank Nevada to purchase $14 million in First Priority's assets. The FDIC said that First Priority had total assets of $259 million as of June 30, as well as total deposits of $227 million.
Hundreds of banks will fail, Roubini tells Barron's The United States is in the second inning of a recession that will last for at least 18 months and help kill off hundreds of banks, influential economist and New York University Professor Nouriel Roubini told Barron's in Sunday's edition. Taxpayers will pay a big price for helping bail out the rest of the financial services industry as well, Roubini said -- at least $1 trillion and more likely $2 trillion. The banks will become insolvent because of mounting losses as a result of the housing bust and because they have only written down their subprime loans so far, he said. Still in front of them are their consumer-credit losses, for which they lack the reserves, Barron's reported.
Rising prices beat down consumer spending in June Consumer spending tumbles in June as prices surged by largest amount since 1981 Consumer spending, after adjusting for inflation, fell in June as shoppers were hit with the biggest increase in prices in nearly three decades. The Commerce Department reported Monday that consumer spending dipped by 0.2 percent in June, after removing the effects of higher prices, the poorest showing since a similar drop in February. The higher prices reflected a big surge in gasoline costs and helped to drive an inflation gauge tied to consumer spending up by 0.8 percent in June, the biggest increase since a 1 percent rise in February 1981. The big rise in inflation ate up a part of the billions of dollars in stimulus payments delivered during the month. Personal incomes rose by a tiny 0.1 percent in June following a giant 1.8 percent increase in May
Pressure grows for action on US economy Pressure for action to revive the economy grew on Friday as a new report showed the unemployment rate rose in July to 5.7 per cent – its highest for four years – and the number of jobs fell for a seventh straight month. The Labor Department data provided further evidence of deterioration in the economy as companies in a broad range of sectors including manufacturing, construction and retailing trimmed workforces. But it also offered some encouragement since the pace of job losses – at 51,000 last month – was not as rapid as predicted by economists and remained below the levels in previous recessions. Officials said there were 26,000 fewer positions shed in May and June than previously reported. "The labour market has not yet capsized but is taking on more water,” said Michael Feroli, a US economist at JPMorgan.
Bad News and Bank Runs The Bush administration is going to be mailing out more "stimulus" checks in the very near future. There's just no way around it. The Fed is in a pickle and can't lower interest rates for fear that food and energy prices will shoot into the stratosphere. At the same time, the economy is shrinking faster than anyone thought possible with no sign of a rebound. That leaves stimulus checks as the only way to "prime the pump" and keep consumer spending chugging along. Otherwise business activity will slow to a crawl and the economy will tank. There's no other choice. The daily barrage of bad news is really starting to get on people's nerves; it's obvious everywhere you look. Most of the TV chatterboxes have already cut-out the cheery stock market predictions and no one is praising the "impressive powers of the free market" any more. They know things are bad, real bad. That's why the business news is no longer presented like a happy-go-lucky Bollywood extravaganza with undulating females and exotic music. Now it’s more like B-grade slasher movie where everyone winds up dead at the end of the show.
Roads, airports on the block as budgets tighten Cash-strapped U.S. state and city governments are likely to sell or lease more highways, bridges, airports and other assets to investors desperate for stable returns after being frazzled by the credit crisis. The trend is set to pick up speed given worsening budget deficits in state capitals and city halls nationwide. It will also be welcomed by Wall Street bankers hoping to help create and market so-called "infrastructure" transactions at a time many debt markets remain paralyzed, and after major U.S. stock indexes fell into bear market territory.
ONE YEAR AGO! Jim Cramer’s TV outburst that will last for ages Cramer Day is upon us. This weekend marks the anniversary of former hedge fund manager Jim Cramer’s outburst on CNBC that the Federal Reserve was “asleep” and that there was “Armageddon” in the fixed income markets. It was possibly the most entertaining five minutes of financial television ever broadcast. Those who do not work in a Wall Street trading room and have not watched the excerpt repeatedly over the past year, can watch it on YouTube (search for Cramer, Bernanke and Burnett) where it is a popular view. Even for those not amused by the sight of Cramer losing his cool on live television, the incident has significance. The outburst signalled for the first time to the general public in the US that the largely technical problems for the credit market could have serious repercussions for them.
Fed likely to hold rates steady amid crosscurrents Fed likely to leave rates steady as it straddles slow economic growth, inflation concerns An ugly brew of rising unemployment, spiking foreclosures and gyrating energy prices is plaguing the country and making life difficult for Federal Reserve Chairman Ben Bernanke as he tries to right the economy. Bernanke and his central bank colleagues are faced with dueling problems: weak economic growth and advancing inflation. To treat one risks aggravating the other. So the Fed is widely expected when it meets Tuesday to leave a key interest rate alone. "It is caught between a rock and a hard place. The (Fed) will stand pat," predicted Sung Won Sohn, an economics professor at California State University Channel Islands.
Jobless Rate Hits a High, Dims Hope For Recovery Four-Year Peak Signals Deeper Economic Woes The fallout from the economic downturn spread into new corners of the job market in July, adding to the deep stresses facing American workers. The unemployment rate jumped yet again as employers slashed jobs for the seventh consecutive month, the Labor Department said yesterday. And the job losses weren't just in the long-troubled construction and manufacturing sectors. Trucking companies, telecommunications firms and car dealers all eliminated thousands of jobs, too, as the troubles in the nation's economy showed new breadth that undermines any hopes of even a tentative recovery in the second half of the year.
Rich begin feeling the pain in down economy The rich are sharing your financial pain -- and contributing to it. It may have taken longer and it may not be as acute, but there are early hints that the economic slump is crimping the lifestyles of the wealthy. They are investing more conservatively, spending less on luxury goods and are being more thrifty with their credit cards. Many are asking their personal shoppers and private-jet travel providers to seek the best deals rather than over-the-top extravagances. That news may produce a shrug from many people who have lost their jobs or homes in this economy. The problem is that when the wealthy get stingy, it trickles down to the rest of us.
Dollar Trades Near 1-Month High Before Federal Reserve Meeting The dollar traded near a one-month high against the euro before a Federal Reserve meeting tomorrow at which policy makers may leave interest rates on hold and signal that prices are rising too quickly. The U.S. currency was also near a one-month high against the yen before data today that is forecast by economists to show the Fed's preferred measure of prices rose in June by the most in six months, backing the case for higher borrowing costs. The New Zealand dollar traded near a 10-month low on speculation the yield advantage of the nation's bonds will shrink as a slowing economy prompts more rate cuts.
Watchful central banks to hold rates The Federal Reserve, European Central Bank and the Bank of England are likely to keep interest rates on hold this week, amid a deteriorating global growth and continued high inflation. As the first anniversary of the credit crisis looms on August 9, when the ECB first moved to pump €95bn ($150bn) into money markets suddenly starved of liquidity, the outlook confronting policymakers remains grim. Evidence has mounted of a deepening slowdown in the UK and faltering momentum in the eurozone, while Japan is weak and could even declare a technical recession. US growth could be lower in the second half than the first. Yet everywhere inflation is above its declared or implicit target, and likely to remain there for some time.
Kansas companies put out of business by high fuel costs After more than 40 years in the business, Mike Ross closed his Salina trucking company on July 1. Tony Gaston cut his Hutchinson fleet from 50 to 26 trucks. Now he is looking at laying off some office staff. Mike Fritch of Burrton went from three trucks to one. Even then, he says, it's touch and go. "It's fuel costs," Fritch said. "Cash flow disappears and fuel costs keep going up. "You have to make the decision: Do you buy a new set of tires, find used tires or try to keep running with what you got? I haven't bought new tires since 2002. I'm cutting corners everywhere I can." Travel down Kansas highways these days and the journey is more solitary -- fewer trucks as well as fewer cars. Nationwide, nearly 1,000 trucking companies failed in the first quarter of this year, parking 42,000 trucks, according to the most recent information available from the Federal Motor Carrier Safety Administration. Just less than 2,000 companies closed their doors all of last year.
Oil prices end higher on Iran nuclear worries Oil prices settled slightly higher Friday, clawing back above US$125 a barrel after Israel raised new concerns about Iran's nuclear program. But more concerns that high prices are eating into demand limited the gains. Meanwhile, gas prices at the pump fell again as U.S. motorists cut back on driving to save money. A gallon of regular gas slipped just over a penny on average to $3.898 (C$1.07 per litre), according to auto club AAA, Oil Price Information Service and Wright Express. Gas is down 5.2 per cent from record high of $4.114 a gallon reached July 17. Crude prices soared earlier in the day after news reports quoted Israeli Deputy Prime Minister Shaul Mofaz as saying that Iran's nuclear program was poised to make a "major breakthrough" and that his country must be "prepared for every option."
Kuwait official sees oil staying above $100: report Oil was unlikely to fall below $100 per barrel as strong demand from emerging economies such as China and India put a floor under prices, a member of Kuwait's top oil council said in remarks published on Sunday. Concerns about the economy of the United States and falling oil demand in developed countries have knocked crude from a July record of $147 a barrel to $125 on Friday. "I don't think that prices will return to the record level, nor will they fall below $100 per barrel," Khaled Boodai told al-Seyassah newspaper.
TransCanada's Alaska pipeline project wins approval by state Senate TransCanada Corp. ' said Friday the Alaska Legislature has signed off on a license for the company's US$26-billion Alaska Pipeline Project under the Alaska Gasline Inducement Act. "The legislature's decision represents a significant milestone in advancing this major natural gas pipeline project to connect stranded U.S. natural gas reserves to Alaskan and Lower 48 consumers," TransCanada president and chief utive Hal Kvisle said. "This ratification of our license under AGIA will facilitate TransCanada´s continuing commercial negotiations with potential shippers, improving the likelihood of a successful open season and the construction of a natural gas delivery system from Prudhoe Bay to Lower 48 markets." TransCanada said it will now move forward with project development, which will include engineering, environmental reviews, aboriginal relations and commercial work to conclude an initial binding open season by July 2010. TransCanada is targeting to have the pipeline in service by September 2018.
US Arctic Oil May be LOST to the UN "The Arctic may hold 90 billion barrels of oil, more than all the known reserves of Nigeria, Kazakhstan, and Mexico combined, and enough to supply U.S. demand for 12 years.” One would have thought Joe Carroll’s Bloomberg News report would have evoked some interest by the public and other media outlets. Instead, news of the U.S. Geological Survey was greeted mostly by a giant collective yawn… “One third of the undiscovered oil is in Alaskan territory, the agency found…” Considering that the Democrat-controlled Congress adamantly refuses to let drilling occur for the oil known to exist in and off-shore Alaska, it is not surprising the public has concluded this vast treasure will remain untouched.
New York Lambasts Citi It's not really a good idea to try to take advantage of New Yorkers, who learn early in life how to play tough. The state's attorney general, Andrew Cuomo, is threatening to wallop Citigroup for its role in selling auction-rate securities, warning the bank that he is readying a suit and suggesting that he won't be satisfied until it pays back every penny it cost its customers and forks over penalties to the state. Cuomo is not only mad about sales of the supposedly super-safe securities, but he's going after the financial-services firm for allegedly destroying evidence about its practices after it knew it would be investigated. Investigated it is: the federal Securities and Exchange Commission is also looking into the affair, Citigroup disclosed before Cuomo announced his action on Friday.
Hovering Above Poverty, Grasping for Middle Class Low-wage workers in the United States are gripped by increasing financial insecurity as they inch along an economic tightrope made riskier by pervasive job losses and rising prices. Many struggle to pay for life's basics -- housing, food and health care -- and most report having virtually no financial cushion should they stumble. Still, they remain inspired by the American dream, with most saying they are more apt to move up economically than slip backward even if they are frustrated now. Most also expect better for their children. This complex picture of low-wage workers emerges from a survey conducted by The Washington Post, the Henry J. Kaiser Family Foundation and Harvard University. The nationwide poll, conducted June 18 to July 7, included 1,350 randomly selected people between ages 18 and 64 who work at least 30 hours a week and earned no more than $27,000 last year.
Economy leads Americans' list of woes Forget the woes of war, terrorists and a troubling culture. American angst is now centered on the economy, our worries fixated on gas prices, personal finances, unemployment, inflation, stagnant real estate - dotted with a few resilient pockets of optimism, according to research released Friday. "The public continues to be extremely downbeat," said a Pew Research Center survey that found just 10 percent of us deemed the economy to be in "good shape." More than half of the respondents - 54 percent - said we are already in a recession, while 18 percent said we were in a depression.
Fannie, Freddie Do More To Prevent Foreclosures $$ Fannie Mae and Freddie Mac, trying to contain mortgage-default losses, are redoubling efforts to prevent foreclosures. In some cases, though, these moves may only delay the inevitable, easing pressure on the companies' finances in the short term without resolving their troubles. The two U.S.-government-sponsored guarantors of home loans last week said they will increase fees they pay loan-servicing companies for "workouts" that prevent foreclosures. (Servicing companies collect loan payments and handle other administrative tasks.) Freddie also said it will give servicers more time to pursue such workouts.
Auto sales in U.S. skid in July to 16-year low U.S. auto sales slumped to a 16-year low in July as automakers failed to keep up with consumers' growing demand for smaller, more fuel-efficient vehicles. While production changes may help that problem, trouble in the credit and auto leasing markets will continue to take a toll on sales.
U.S. ISM Manufacturing Index Declined to 50 in July Manufacturing in the U.S. stagnated in July as orders slumped to the lowest level in almost seven years, signaling higher raw material costs and slower spending are hurting producers. The Institute for Supply Management's factory index fell to 50, a higher reading than forecast, from 50.2 in June, the Tempe, Arizona-based group said today. A reading of 50 is the dividing line between expansion and contraction. Manufacturers are scaling back to protect profits and prevent inventories from growing as demand weakens. The drop in the value of the dollar has made U.S. goods more affordable overseas, leading to gains in exports that are keeping factories from sinking.
Shrinking US payrolls Maybe they have been numbed by all the bad news elsewhere but the loss of 51,000 American jobs in July does not seem to bother investors much. It should. Beneath the headline unemployment rate of 5.7 per cent, the jobs market is fast deteriorating. In the past 12 months, the workforce has increased by 1.4m people, yet the number employed has dropped by more than 200,000. America needs to create more than 115,000 jobs a month just to keep up with population growth.
Employers in U.S. Cutting Jobs, Hours, Signaling Slower Growth Employers in the U.S. fired workers in July for a seventh straight month and cut hours for remaining staff to a record low, signaling economic growth weakened at the start of the second half of the year. Americans labored an average 33 hours and 36 minutes per week, six minutes less than in June and matching the shortest workweek since records began in 1964, the Labor Department said yesterday in Washington. The jobless rate jumped to 5.7 percent, the highest level in more than four years.
Companies Tap Pension Plans To Fund Executive Benefits $$ Little-Known Move Uses Tax Break Meant For Rank and File At a time when scores of companies are freezing pensions for their workers, some are quietly converting their pension plans into resources to finance their executives' retirement benefits and pay. In recent years, companies from Intel Corp. to CenturyTel Inc. collectively have moved hundreds of millions of dollars of obligations for executive benefits into rank-and-file pension plans. This lets companies capture tax breaks intended for pensions of regular workers and use them to pay for executives' supplemental benefits and compensation. The practice has drawn scant notice. A close examination by The Wall Street Journal shows how it works and reveals that the maneuver, besides being a dubious use of tax law, risks harming regular workers. It can drain assets from pension plans and make them more likely to fail. Now, with the current bear market in stocks weakening many pension plans, this practice could put more in jeopardy.
Teens pushed out of job scene As jobs grow harder to find, older workers are taking entry-level positions once filled by teens. The job market has been getting tighter for all workers, but it's becoming especially hard for those who are trying to get The unemployment rate for working-age teens rose to 20.3 percent in July, the U.S. Department of Labor disclosed late last week. That's almost four times the overall 5.7 percent unemployment rate, and a big leap up from the already elevated 15.3 percent rate among teens a year ago. Economists are reporting "the demise of the summer job" and saying this is the worst season in more than 60 years for those ages 16 to 19 who want or need to work.
Future Looks Bleak For Jobs Although companies didn't shed as many jobs as expected in July, losses are likely to accelerate as macroeconomic weakness creeps deeper into companies across sectors. The U.S. economy got mostly bad news on Friday as the July unemployment rate jumped to 5.7%, with young people bearing the brunt of the losses. The level was higher than expected by economists, who were looking for 5.6% on average, although the number of jobs actually lost was not as severe as expected, coming it at 51,000 instead of the predicted 72,000.
Good News on Reverse Mortgages Buried in the new housing bill (The Housing and Economic Recovery Act) is some very good news for seniors whose main asset is the family home. The new law makes it easier and less expensive for seniors to access the cash value of their homes on a tax-free basis through a reverse mortgage, and expands the amount that can be borrowed. Reverse mortgages had nothing to do with the mortgage mess -- they are a safe and easy way for homeowners age 62 and older to maintain control and ownership, while tapping their home equity for tax-free cash.
Totaled G.M.'s losses are huge, BMW's U.S. prospects are dim, and the industry pain deepens. G.M.'s $15.5 billion second-quarter loss—a stunning $27.33 per share—was expected, but reports from Europe that BMW was further scaling back its sales expectations for the U.S. market is chilling as well. Friday afternoon's dismal auto-sales numbers only mocked the afflicted. G.M.'s C.E.O Rick Wagoner told CNBC: "Challenging market conditions aren't going to go away tomorrow." He'd better hope, for the sake of investors and his own hide, that they do go away the day after. And even though there are enough one-time charges in the mix that make G.M.'s operating loss closer to $6.3 billion, the company's North American auto sales fell to roughly $19 billion from $29 billion in the same period last year. The world knew that G.M. was in dire straits. It said yesterday that Indian automaker Mahindra & Mahindra was one of several potential buyers for its gas-guzzling Hummer brand, and that it, along with Ford, was scaling back its leasing business. Chrysler had already said it was ending all leasing deals in the U.S., according to the Wall Street Journal.
Horrible, or Just Grim? The economy lost jobs for the seventh straight month, and the unemployment rate jumped to a four-year high. Is there a silver lining in here somewhere? Okay, news on the job market is out and everyone agrees it's not good. But how bad is it? In its press release on the latest numbers, the Bureau of Labor Statistics notes that "over the past 12 months, the number of unemployed persons has increased by 1.6 million, and the unemployment rate has risen by 1 percentage point." Lest you think the problem might be limited to new workers entering the market faster than the economy can create jobs for them, the B.L.S. has a little factoid to disabuse you: "The number of unemployed persons who had lost their last job...has risen by 778,000 over the year." Felix Salmon of the Market Movers blog elsewhere on Portfolio.com sums up the jobs situation in one word: "ugly."
Are Economic Woes Pushing Up Library Circulation? ....Public library usage is expected to rise dramatically in the coming months. Traditionally, people turn to public libraries during hard economic times for free entertainment, free after-school child care, to help with employment, for free access to the public use computers and to help them save money by doing things themselves, such as home and auto repairs. Queens Library saw a 16 percent jump in circulation and attendance immediately following Sept. 11, for instance. After the last recession in the United States, in 2001, the American Library Association reported that library usage had risen sharply and that 91 percent of adults believed libraries would play an important role in the future, even with the information revolution accompanying the rise of the Internet. There have not been any national studies yet on whether the current economic downturn has influenced library patronage.
Volatility looms as eyes on profits, Fed, oil Wall Street could be in for more volatility next week as investors brace for a new batch of key earnings reports and the U.S. Federal Reserve's assessment of the economy. A slightly positive but extremely mixed bag of corporate earnings so far, coupled with choppy oil prices, has had the market on a roller-coaster ride.
U.N. council must increase sanctions on Iran: U.S The United States said on Sunday that Iran has left the U.N. Security Council no choice but to increase sanctions on the Islamic Republic for ignoring demands that it halt sensitive nuclear activities. The U.S. declaration came a day after an informal deadline lapsed for Iran to respond to an offer from the United States, Britain, France, Germany, China and Russia for talks on its disputed nuclear program. "It is clear that the government of Iran has not complied with the international community's demand to stop enriching uranium and isn't even interested in trying," said Richard Grenell, spokesman for the U.S. mission to the United Nations.
Solana, Iran nuclear negotiator to talk soon Iran's top nuclear negotiator, Saeed Jalili, and EU foreign policy chief Javier Solana are expected to discuss the major powers' offer on Tehran's nuclear program by phone soon, Solana's spokeswoman said on Sunday. "We expect a contact between Mr Solana and Mr Jalili soon by phone," the spokeswoman said, a day after the informal deadline set by the powers for an answer from Iran. She gave no further Western officials gave Tehran two weeks from July 19 to respond to their offer not to impose more U.N. sanctions on Iran if it froze any expansion of its nuclear work. Iran said on Saturday it would not back down in its nuclear row with the powers. "In whichever negotiation we take part ... it is unequivocally with the view to the realization of Iran's nuclear right and the Iranian nation would not retreat one iota from its rights," President Mahmoud Ahmadinejad said in a statement.
Iran could have nukes by '09 With Iran racing forward with its nuclear program, Israel now believes the Islamic Republic will master centrifuge technology and be able to begin enriching uranium on a military scale this year, The Jerusalem Post has learned. The new assessment moves up Israel's forecasts on Teheran's nuclear program by almost a full year - from 2009 to the end of 2008. According to the new timeline, Iran could have a nuclear weapon by the middle of next year. Iran, a senior defense official said on Tuesday, had encountered numerous technical obstacles on its way to enriching uranium but was now on track to master the technology needed to enrich uranium within six months.
Ahamdinejad slams West for targeting Iran's sovereignty Iranian President Mahmoud Ahmadinejad has lashed out at the West' especially the US' for targeting the Islamic country's dignity and sovereignty under the pretext of the ongoing nuclear issue' the official IRNA News agency reported Saturday. The 'enemies' want us retreat from our nuclear drive and 'are targeting our sovereignty' under the pretext of this issue' Ahamdinejad told a group of people in southern Tehran Friday. 'The key reason for the hostility of the enemies in the past 30 years against Iran is that they want us to pull back so that they can say we have given in'' he said referring to the US pressure on the country to halt its nuclear programme. 'No nation can survive without independence. Many people sacrifice their personal interests and even their lives to maintain the independence of their country'' he said expressing anger over the threats by the US to attack the country if it did not stop its nuclear programme. 'But the Iranian people will resist with force against the enemies'' he said stressing that Tehran is determined to go ahead with its efforts to have nuclear power.
Ahmadinejad: Iran will stand against its enemies Iran will "stand against" its enemies, Reuters quoted Iranian President Mahmoud Ahmadinejad as saying Friday, the day before a Saturday deadline Western officials set for the Islamic Republic to answer their offer to freeze nuclear expansion. The nuclear issue itself, according to Ahmadinejad, was being used as an excuse by the country's enemies. "The main reason for their enmity with this nation in the past 30 years is that they want to force the Iranian nation to retreat," he was quoted as saying. "Whenever the enemies have failed against this nation they have tried to make excuses, but the Iranian nation will stand against them with its power."
Hey, Barack, Hillary Only Suspended Her Campaign In the turbulent wake left by Barack Obama’s world tour—his campaign to be loved by all, less a significant percentage of the American people—it seems something has slipped the minds of David Axelrod and David Plouffe; Hillary Clinton didn’t quit her campaign, she suspended it… This becomes increasingly significant as more Americans – more Democrats, Progressive-Leftists and especially Democrat superdelegates – realize that Barack Obama
--------------- article from October 2007 -----------------
China threatens 'nuclear option' of dollar sales The Chinese government has begun a concerted campaign of economic threats against the United States, hinting that it may liquidate its vast holding of US treasuries if Washington imposes trade sanctions to force a yuan revaluation. Two officials at leading Communist Party bodies have given interviews in recent days warning - for the first time - that Beijing may use its $1.33 trillion (£658bn) of foreign reserves as a political weapon to counter pressure from the US Congress. Shifts in Chinese policy are often announced through key think tanks and academies. Described as China's "nuclear option" in the state media, such action could trigger a dollar crash at a time when the US currency is already breaking down through historic support levels.
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