CHINA FLOODS STREETS WITH TROOPS

Summit Draft: G8/ G5 agree not to use currency to gain competitive advantage
EMMA VANDORE, JANE WARDELL, AP Business Writers 8:43 AM PDT, July 9, 2009

L'AQUILA, Italy (AP) — Leaders of rich and developing nations meeting here have agreed not to resort to currency devaluation to gain a competitive advantage — while shying away from any discussion of the dollar's status as the world's reserve currency.We will refrain from competitive devaluations of our currencies and promote a stable and well functioning international monetary system,the leaders said in a draft joint declaration entitled promoting the global agenda, obtained by The Associated Press.One of the reasons often cited as to why the 1930s Great Depression lasted so long was that countries acted independently to protect their own interest by undermining their currencies. A cheaper currency boosts exports.Christine Lagarde, France's finance minister, for one was particularly vocal earlier this year about how Britain was gaining an advantage by doing nothing to stem the sharp fall in the pound against the euro.Though the dollar was not mentioned in the draft declaration, its future as the world's reserve currency is likely to remain a topic for debate over the coming months or years, as China, Russia and India have expressed their desire to see long-term changes in the international monetary system.But they have been careful to not push their desire for change too far — in case the dollar slumps and the value of their large dollar-denominated investments plummet.

China said its officials raised the issue here at a working lunch on Thursday lunch, but British Prime Minister Gordon Brown said he could not recall a discussion about it and that it was not on the formal agenda.There was not a serious discussion about this,Brown told reporters.In this present situation as we're trying to get out of a deep recession, I don't want to give the impression that there's some major change about to happen round the corner that suggests that the present arrangements are destabilized.White House press secretary Robert Gibbs said that the dollar was not brought up in bilateral talks on Thursday with U.S. President Barack Obama and Brazil President Luiz Inacio Lula da Silva despite a lengthy conversation on the economy.I think that despite whatever talk you might hear, I don't see that there's any movement away from the notion of the dollar being that currency,Gibbs told reporters.

Stephen Lewis, chief economist at Monument Securities, said that it was not surprising that the reserve currency issue had dropped off the agenda with the departure of Chinese President Hu Jintao, who cut short a trip to Italy after violence in the capital of western Xinjiang on Wednesday after ethnic riots left at least 156 dead.Nobody else seems to really have a problem with the U.S. as the standard,Lewis said.The exchange rate is nothing outrageous for any of the nations. ... If they start talking about it in public, it could trigger market panic, so as long as they know that they can't reach an agreement they will spend time talking about other issues.A sliding dollar would be bad for global growth as it introduces uncertainty into the financial markets and would raise the prices of commodities, such as oil, that are priced in dollars. It would also make it far more difficult for the U.S. to fund its deficits as investors would be wary of buying up U.S. Treasury debt.The Group of Eight industrialized nations of Canada, Britain, France, Germany, Italy, Japan, Russia and the United States on Thursday opened their annual summit to Brazil, China, India, Mexico and South Africa, as well as Egypt.AP reporters Charles Babington in L'Aquila and Michael Bushnell in London contributed to this report.

Q+A - Replacing the dollar as reserve currency
Wed Jul 8, 2009 1:25am EDT

NEW YORK, July 8 (Reuters) - The U.S. dollar is in the line of fire as leaders from the largest developed and developing countries gather in Italy for talks, as China pushes for debate on an eventual shift to a new global reserve currency.Sources have said the dollar's role probably will not be included in the final communique of a G8 meeting. Even if it does rate a mention, the language used would likely be extremely general to avoid destabilizing financial markets.Still, the symbolic importance would be immense, as it would underscore the determination of emerging economies, who will also be present in Italy for the talks, to win greater say in the global financial system and, over time, to reduce their dependence on the U.S. currency.

WHY REPLACE THE DOLLAR AS GLOBAL RESERVE CURRENCY?

China and other emerging market heavyweights such as Russia and Brazil, are among the biggest holders of dollar assets, mostly in the form of U.S. Treasury debt. Indeed, China has the biggest stock pile of foreign reserves in the world.Yet for most of this decade, the United States has struggled to maintain the dollar's value. Against major currencies, the dollar has lost 33 percent in value since 2002 .DXY.And with the financial crisis prompting the United States to commit trillions of dollars to rescue the economy, these countries fear inflation will further debase the dollar. China, which is thought to hold some 70 percent of its massive $1.9 trillion FX reserves in dollars, is especially vulnerable.Critics also say the benefits the United States enjoys as printer of the premier reserve currency promotes imbalances in the world financial system, leaving Washington to run deficits as it supplies the world with a steady supply of dollars.The accumulation of excessively large dollar reserves can then lead to asset bubbles. Some economists contend China's recycling of reserves into U.S. Treasury debt kept U.S. interest rates low and contributed to the housing bubble behind the global downturn.

WHAT ARE THE OTHER CURRENCIES TO WATCH?

A. Euro status grows

The euro is the world's most actively traded currency after the dollar and so is highly liquid, making it easy to buy and sell euro-denominated bonds without disrupting the market.As a result, the share of global foreign exchange reserves held in the euro has grown since its 1999 inception and stands at 25.9 percent from 18.1 percent. Russia's central bank has adjusted its holdings to the point where it holds roughly equal amounts of euros and dollars, though that is partly because of Russia's strong trade links with the 16-country euro zone.But the European Central Bank has refrained from promoting the euro as a reserve currency, as doing so would stoke demand from central banks and push up its value against the dollar. A strong currency could hamper euro-zone growth.

B. The Mighty Yuan

China's yuan, also known as the remnimbi, is the currency of the most populous country on earth and many believe China will in coming decades be the world's most powerful economy.China has already inked deals with trading partners to use the yuan as an invoicing currency, and demand from central banks to hold it as a store of value will increase as China secures its place on the top rungs of world economic power.But there are major financial and political obstacles that will ensure this process will take years, and perhaps decades.China would have to loosen controls over its economy and financial system to allow the currency to flow more freely and the likes of central banks and foreigners to invest freely.Indeed, top Chinese officials seem to recognize a shift away from the dollar would take a long time. For more on what it would take for the yuan to be considered a viable reserve currency, see [ID:nL677953] and [ID:nPEK225167]

C. In commodities we trust

Demand for oil, metals and other commodities could prompt central banks to diversify some reserves into currencies from commodity exporters such as Australia, Canada and New Zealand.A big problem is that the market for these currencies is tiny relative to the $6.5 trillion in global reserves. Even minor price moves would spark huge exchange rate volatility.

D. Super-sovereign SDR

China and Russia have suggested the International Monetary Fund's Special Drawing Right, essentially a basket of currencies, could become a global reserve currency unit.Greater SDR use would involve promoting it for use in trade settlement and as a monetary unit in which private international transactions -- loans, bonds, deposits --are denominated.The IMF will review the SDR's composition in 2010, and emerging countries will likely follow China in pushing for their own currencies to be included.

Some have said it would be easier for central banks to simply shuffle reserves to reflect the SDR's composition.The IMF's quarterly Currency Composition of Foreign Exchange Reserves data showed the dollar's share of central bank reserves rose in the first quarter to 64.9 percent from 64 percent.That was its highest share in nearly two years but was partly tied to temporary safe-haven demand for dollars during the midst of a financial crisis. It was still below the dollar's 73 percent share in early 2001. [ID:nN30446414]

WORLD CURRENCY
http://www.wiseupjournal.com/?p=872

The G20 moves the world a step closer to a global currency.The world is a step closer to a global currency, backed by a global central bank, running monetary policy for all humanity.By Ambrose Evans-Pritchard Published: 7:18AM BST 03 Apr 2009

A single clause in Point 19 of the communiqué issued by the G20 leaders amounts to revolution in the global financial order.We have agreed to support a general SDR allocation which will inject $250bn (£170bn) into the world economy and increase global liquidity,it said. SDRs are Special Drawing Rights, a synthetic paper currency issued by the International Monetary Fund that has lain dormant for half a century.

G20 summit: leaders on brink of $1 trillion rescue dealIn effect, the G20 leaders have activated the IMF's power to create money and begin global quantitative easing. In doing so, they are putting a de facto world currency into play. It is outside the control of any sovereign body. Conspiracy theorists will love it. It has been a good summit for the IMF. Its fighting fund for crises is to be tripled overnight to $750bn.This is real money.Dominique Strauss-Kahn, the managing director, said in February that the world was already in Depression and risked a slide into social disorder and military conflict unless political leaders resorted to massive stimulus. He has not won everything he wanted. The spending plan was fudged. While Gordon Brown talked of $5 trillion in global stimulus by 2010, this is mostly made up of packages already under way.But Mr Strauss-Kahn at least has resources fit for his own task. He will need them. The IMF is already bailing out Pakistan, Iceland, Latvia, Hungary, Ukraine, Belarus, Serbia, Bosnia and Romania. This week Mexico became the first G20 state to ask for help. It has secured a precautionary credit line of $47bn. Gordon Brown said it took 15 years for the world to grasp the nettle after Great Crash in 1929.This time I think people will agree that it has been different,he said.

President Barack Obama was less dramatic. I think we did OK, he said. Bretton Woods in 1944 was a simpler affair.Just Roosevelt and Churchill sitting in a room with a brandy, that's an easy negotiation, but that's not the world we live in.There will be $250bn in trade finance to kick-start shipping after lenders cut back on Letters of Credit after September's heart attack in the banking system. Global trade volumes fell at annual rate of 41pc from November to January, according to Holland's CPB institute – the steepest peacetime fall on record.Euphoria swept emerging markets yesterday as the first reports of the IMF boost circulated. Investors now know that countries like Mexico can arrange a credit facility able to cope with major shocks – and do so on supportive terms, rather than the hair-shirt deflation policies of the old IMF. Fear is receding again.The Russians had hoped their idea to develop SDRs as a full reserve currency to challenge the dollar would make its way on to the agenda, but at least they got a foot in the door.There is now a world currency in waiting. In time, SDRs are likely evolve into a parking place for the foreign holdings of central banks, led by the People's Bank of China. Beijing's moves this week to offer $95bn in yuan currency swaps to developing economies show how fast China aims to break dollar dependence.French President Nicolas Sarkozy said the summit had achieved more than he ever thought possible, and praised Gordon Brown for pursuing the collective interest as host rather than defending Anglo-Saxon interests. This has a double-edged ring, for it suggests that Mr Brown may have traded pockets of the British financial industry to satisfy Franco-German demands. The creation of a Financial Stability Board looks like the first step towards a global financial regulator. The devil is in the details.

Hedge funds deemed systemically important will come under draconian restraints. How this is enforced will determine whether Mayfair's hedge-fund industry – 80pc of all European funds are there – will continue to flourish. It seems that hedge funds have been designated for ritual sacrifice, even though they played no more than a cameo role in the genesis of this crisis. It was not they who took on extreme debt leverage: it was the banks – up to 30 times in the US and nearer 60 times for some in Europe that used off-books conduits to increase their bets. The market process itself is sorting this out in any case – brutally – forcing banks to wind down their leverage. The problem right now is that this is happening too fast. But to the extent that this G20 accord makes it impossible for the shadow banking to resurrect itself in the next inevitable cycle of risk appetite, it may prevent another disaster of this kind.The key phrase is new rules aimed at avoiding excessive leverage and forcing banks to put more money aside during good times.This is more or less what the authorities agreed after the Depression. Complacency chipped away at the rules as the decades passed. It is the human condition, and we can't change that.

OBAMA ON CLIMATE CHANGE GOALS
http://www.cnbc.com/id/15840232?video=1176503752&play=1
CLIMATE CHANGE AT G-8
http://www.cnbc.com/id/15840232?video=1176424622&play=1
http://www.cnbc.com/id/15840232?video=1176379765&play=1
http://www.cnbc.com/id/15840232?video=1176366651&play=1
http://www.cnbc.com/id/15840232?video=1176379753&play=1
http://www.cnbc.com/id/15840232?video=1176408506&play=1
IS THE FED TO POLITICAL
http://www.cnbc.com/id/15840232?video=1176383493&play=1
GM EMERGES FROM BANKRUPTCY
http://www.cnbc.com/id/15840232?video=1176464992&play=1

CQ Transcript Wire Thursday, July 9, 2009; 12:56 PM
(JOINED IN PROGRESS)

PRESIDENT OBAMA: ... the people of Italy have shown us during this stay. We are very grateful to all of you. I also want to thank the 17 other leaders who participated. We had a candid and open discussion about the growing threat of climate change and what our nations must do, both individually and collectively, to address it. And while we don't expect to solve this problem in one meeting or one summit, I believe we've made some important strides forward as we move towards Copenhagen. I don't think I have to emphasize that climate change is one of the defining challenges of our time. The science is clear and conclusive, and the impacts can no longer be ignored. Ice sheets are melting. Sea levels are rising. Our oceans are becoming more acidic, and we've already seen its effects on weather patterns, our food and water sources, our health and our habitats. So every nation on this planet is at risk. And just as no one nation is responsible for climate change, no one nation can address it alone. And that's why, back in April, I convened this forum of the world's major economies who are responsible for more than three- quarters of the world's carbon pollution, and it's why we've gathered again here today. Each of our nations comes to the table with different needs, different priorities, different levels of development. And developing nations have real and understandable concerns about the role they will play in these efforts. They want to make sure that they do not have to sacrifice their aspirations for development and higher living standards. Yet, with most of the growth in projected emissions coming from these countries, their active participation is a prerequisite for a solution. We also agree that developed countries, like my own, have a historic responsibility to take the lead. We have the much larger carbon footprint per capita. And I know that in the past the United States has sometimes fallen short of meeting our responsibilities. So let me be clear: Those days are over. One of my highest priorities as president is to drive a clean- energy transformation of our economy. And over the past six months, the United States has taken steps towards this goal. We've made historic investments in the billions of dollars in developing clean-energy technologies. We're on track to create thousands of new jobs across America on solar initiatives, and wind projects, and biofuel projects, trying to show that there is no contradiction between environmentally sustainable growth and robust economic growth.

We've also for the first time created a national policy raising our fuel-efficiency standards that will result in savings of 1.8 billion barrels of oil over the lifetime of vehicles sold in the next five years alone. And we just passed in our House of Representatives the first climate change legislation that would cut carbon pollution by more than 80 percent by 2050.These are very significant steps in the United States. They're not as far as some countries have gone, but they are further than others. And I think that, as I wrestle with these issues politically in my own country, I've come to see that it is going to be absolutely critical that all of us go beyond what's expected if we're going to achieve our goals. During the course of our three days in L'Aquila, we've taken also a number of significant steps forward; I want to briefly highlight them.This week, the G-8 nations came to a historic consensus on concrete goals for reducing carbon emissions. We all agreed that, by 2050, developed nations will reduce their emissions by 80 percent and that we will work with all nations to cut global emissions in half.This ambitious effort is consistent with limiting global warming to no more than two degrees Celsius, which, as our declaration explicitly acknowledged for the first time, is what the mainstream of the scientific community has called for. Today, at the Major Economies Forum, developed and developing nations made further and unprecedented commitments to take strong and prompt action. Developed nations committed to reducing their emissions in absolute terms. And for the first time, developing nations also acknowledged the significance of the two-degree Celsius metric and agreed to take action to meaningfully lower their emissions relative to business as usual in the midterm, in the next decade or so. And they agreed that, between now and Copenhagen, they will negotiate concrete goals to reduce their emissions by 2050. We also agreed that the actions we take to achieve our reductions must be measurable, reportable, and verifiable. And we agreed to establish at the earliest possible date a peak year after which overall global emissions will start falling. And these are all very significant steps forward in addressing this challenge.In addition, we agreed to substantially increase financial resources to help developing nations create low-carbon growth plans and deploy clean-energy technologies. We also recognize that climate change is already happening, and so we're going to have to help those affected countries adapt, particularly those who are least able to deal with its consequences because of a lack of resources.

So we are looking at providing significant financial assistance to help these countries. And I want to particularly commend President Calderon of Mexico and Gordon Brown of the United Kingdom for coming up with some creative proposals that all of us are going to be exploring as to how we might finance this. We've asked the G-20 finance ministers to take up the climate financing issues and report back to us at the G-20 meeting in Pittsburgh in the fall. Finally, we've agreed to create a new global partnership to drive the development of transformational clean-energy technologies around the world. Our goal is to double the research and development investments. We need to bring these technologies to market and to achieve our long-term energy and emissions goals. A number of countries have already agreed to take the lead on developing particular technologies, including solar and smart grids, advanced vehicles, bioenergy, and more. Australia, for example, is creating a new center, which Kevin will be introducing shortly, and I think points to the ability for us to pool our resources in order to see the technological breakthroughs that are going to be necessary in order for us to solve this problem. So let me just summarize: We've made a good start, but I'm the first one to acknowledge that progress on this issue will not be easy. And I think that one of the things we're going to have to do is fight the temptation towards cynicism, to feel that the problem is so immense that somehow we cannot make significant strides. It is no small task for 17 leaders to bridge their differences on an issue like climate change. We each have our national priorities and politics to contend with, and any steps we agree to here are intended to support and not replace the main U.N. negotiations with more than 190 countries.It's even more difficult in the context of a global recession, which I think adds to the fears that somehow addressing this issue will contradict the possibilities of robust global economic growth. But, ultimately, we have a choice. We can either shape our future, or we can let events shape it for us. We can fall back on the stale debates and old divisions, or we can decide to move forward and meet this challenge together. I think it's clear from our progress today which path is preferable and which path we have chosen. We know that the problems we face are made by human beings; that means it's within our capacity to solve them. The question is whether we will have the will to do so, whether we'll summon the courage and exercise the leadership to chart a new course. That's the responsibility of our generation. That must be our legacy for generations to come. And I am looking forward to being a strong partner in this effort.With that, let me turn it over to Kevin Rudd, who I think has a significant...(ENDS OF COVERAGE) END

Developing Nations Challenge G-8 on Dollar, Climate, Power
By James G. Neuger

July 9 (Bloomberg) -- Leaders of developing nations challenged the hegemony of the U.S. dollar, balked at the industrial world’s strategy for fighting climate change and sought more clout in global markets and institutions. Five countries with almost half the world’s population -- China, India, Brazil, Mexico and South Africa -- demanded a greater stake in the management of the global economy, signaling the drift in power away from the financially wracked West. The confrontation in L’Aquila, Italy at the annual Group of Eight summit dramatized the ascendance of emerging nations --led by China -- as the worst economic calamity since World War II batters the U.S. and its European allies. China is better situated to deal with this crisis, billionaire investor George Soros said in a Bloomberg Radio interview yesterday.The Chinese in my opinion are going to gain in power and influence in a way that people currently don’t recognize.Leaders of the G-5 -- representing 3 billion people with gross domestic product of $7 trillion -- appeared as a united front for a fifth time at the summit of the G-8, the advanced world’s forum founded in 1975. What is happening here is simply the acknowledgment of a reality,Angel Gurria, secretary-general of the Organization for Economic Cooperation and Development, said in a Bloomberg Television interview. Be it the fight against poverty, climate change, trade -- whatever you want that is global in nature -- you need those large emerging economies.

Climate Clash

The eight -- the U.S., Japan, Germany, Britain, France, Italy and Canada, along with Russia, a member since 1998 --unite 880 million people with combined GDP of $32 trillion.The G-5 took aim at the advanced economies’ call for a 50 percent cut in greenhouse-gas emissions by 2050, saying the policy would suppress the economic growth needed to lift millions out of poverty. They demanded money and technology to help clean up the atmosphere. I’m not entirely sure that we expected to come here and have 8 to 10 years of disagreement wash away in a couple of days, White House press secretary Robert Gibbs told reporters today.Everybody understands this is going to take some time.The contrast was highlighted yesterday when the International Monetary Fund said developing countries are leading the way out of the economic morass spawned by the industrial world.

China’s Growth

Emerging economies led by China will expand 4.7 percent next year, the IMF said, up from an April prediction of 4 percent. The Washington-based lender forecast growth of 0.6 percent in the advanced economies, up from expectations of stagnation. Data this week testified to China’s resilience, with new loans rising almost fivefold in June to 1.53 trillion yuan ($224 billion) and passenger-vehicle sales gaining 48 percent the same month, the biggest jump since February 2006. In a statement late yesterday, the G-5 warned the industrial world against backsliding on aid commitments and sought a new global governance, including better representation in the IMF and United Nations.After parallel summits yesterday in a region rebuilding from an earthquake in April, the G-8 and G-5 met today to work on a statement to at least paper over the diverging worldviews.Central to their dispute is the status of the dollar, its role as the world’s dominant reserve currency under threat from the $2.3 trillion in debt run up by the U.S. since the start of 2008 to stem the financial crisis.

Treasury Holdings

The G-5 -- mainly China -- held around $1 trillion in U.S. Treasury debt in April, giving them leverage over decisions made in Washington. Developing countries should wean themselves away from the dollar and use their own currencies in settling trade accounts, Brazilian President Luiz Inacio Lula da Silva said, according to Indian Foreign Secretary Shivshankar Menon.As some emerging countries grumble about the dollar’s hegemony, today’s joint meeting affirmed the need for a stable and well-functioning international monetary system,according to their joint statement. The financial crisis has focused attention on the dollar’s structural weaknesses, but it’s not something that they’re going to change, said Jane Foley, research director at Forex.com in London. The dollar’s importance will reduce over time, but it’s not going to be something which will happen quickly.Chinese President Hu Jintao didn’t need to show up in L’Aquila to project his influence. The Chinese leader hustled back to Beijing before the summit started to deal with ethnic disturbances along China’s western border, leaving State Councilor Dai Bingguo as a representative. Hu’s absence ironically demonstrated China’s presence, said Hideo Kumano, chief economist at Dai-Ichi Life Research Institute in Tokyo.To contact the reporter on this story: James G. Neuger in Rome at jneuger@bloomberg.net

Declaration of the leaders of the major economies forum on energy and climateThe Guardian has been passed a draft of the communique that is due to be issued by world leaders at the Major Economies Forum later today.Guardian.co.uk, Thursday 9 July 2009 15.25 BST

World leaders at the G8 summit in L'Aquila, Italy. Photograph: Haraz N Ghanbari/AP

We, the leaders of Australia, Brazil, Canada, China, the European Union, France, Germany, India, Indonesia, Italy, Japan, the Republic of Korea, Mexico, Russia, South Africa, the United Kingdom, and the United States met as the Major Economies Forum on Energy and Climate in L'Aquila, Italy, on July 9, 2009, and declare as follows:

Climate change is one of the greatest challenges of our time. As leaders of the world's major economies, both developed and developing, we intend to respond vigorously to this challenge, being convinced that climate change poses a clear danger requiring an extraordinary global response, that the response should respect the priority of economic and social development of developing countries, that moving to a low-carbon economy is an opportunity to promote continued economic growth and sustainable development, that the need for and deployment of transformational clean energy technologies at lowest possible cost are urgent, and that the response must involve balanced attention to mitigation and adaptation.

We reaffirm the objective, provisions and principles of the UN Framework Convention on Climate Change. Recalling the Major Economies Declaration adopted in Toyako, Japan, in July 2008, and taking full account of decisions taken in Bali, Indonesia, in December 2007, we resolve to spare no effort to reach agreement in Copenhagen, with each other and with the other Parties, to further implementation of the Convention.

Our vision for future cooperation on climate change, consistent with equity and our common but differentiated responsibilities and respective capabilities, includes the following:

1. Consistent with the Convention's objective and science:

Our countries will undertake transparent nationally appropriate mitigation actions, subject to applicable measurement, reporting, and verification, and prepare low-carbon growth plans. Developed countries among us will take the lead by promptly undertaking robust aggregate and individual reductions in the midterm consistent with our respective ambitious long-term objectives and will work together before Copenhagen to achieve a strong result in this regard. Developing countries among us will promptly undertake actions whose projected effects on emissions represent a meaningful deviation from business as usual in the midterm, in the context of sustainable development, supported by financing, technology, and capacity-building. The peaking of global and national emissions should take place as soon as possible,
recognizing that the timeframe for peaking will be longer in developing countries, bearing in mind that social and economic development and poverty eradication are the first and overriding priorities in developing countries and that low-carbon development is indispensible to sustainable development. We recognize the scientific view that the increase in global average temperature above pre-industrial levels ought not to exceed 2 degrees C. In this regard and in the context of the ultimate objective of the Convention and the Bali Action Plan, we will work between now and Copenhagen, with each other and under the Convention, to identify a global goal for substantially reducing global emissions by 2050. Progress toward the global goal would be regularly reviewed, noting the importance of frequent, comprehensive, and accurate inventories.

We will take steps nationally and internationally, including under the Convention, to reduce emissions from deforestation and forest degradation and to enhance removals of greenhouse gas emissions by forests, including providing enhanced support to developing countries for such purposes.

2. Adaptation to the adverse effects of climate change is essential. Such effects are already taking place. Further, while increased mitigation efforts will reduce climate impacts, even the most aggressive mitigation efforts will not eliminate the need for substantial adaptation, particularly in developing countries which will be disproportionately affected. There is a particular and immediate need to assist the poorest and most vulnerable to adapt to such effects. Not only are they most affected but they have contributed the least to the build up of greenhouse gases in the atmosphere. Further support will need to be mobilized, should be based on need, and will include resources additional to existing financial assistance. We will work together to develop, disseminate, and transfer, as appropriate, technologies that advance adaptation efforts.

3. We are establishing a Global Partnership to drive transformational low-carbon, climate-friendly technologies. We will dramatically increase and coordinate public sector investments in research, development, and demonstration of these technologies, with a view to doubling such investments by 2015, while recognizing the importance of private investment, public-private partnerships and international cooperation, including regional innovation centers. Drawing on global best practice policies, we undertake to remove barriers, establish incentives, enhance capacity-building, and implement appropriate measures to aggressively accelerate deployment and transfer of key existing and new low-carbon technologies, in accordance with national circumstances. We welcome the leadership of individual countries to spearhead efforts among interested countries to advance actions on technologies such as energy efficiency; solar energy; smart grids; carbon capture, use, and storage; advanced vehicles; high-efficiency and lower-emissions coal technologies; bio-energy; and other clean technologies. Lead countries will report by November 15, 2009, on action plans and roadmaps, and make recommendations for further progress. We will consider ideas for appropriate approaches and arrangements to promote
technology development, deployment, and transfer.

4. Financial resources for mitigation and adaptation will need to be scaled up urgently and substantially and should involve mobilizing resources to support developing countries. Financing to address climate change will derive from multiple sources, including both public and private funds and carbon markets.
Additional investment in developing countries should be mobilized, including by creating incentives for and removing barriers to funding flows. Greater predictability of international support should be promoted. Financing of supported actions should be measurable, reportable, and verifiable. The expertise of existing institutions should be drawn upon, and such institutions should work in an inclusive way and should be made more responsive to developing country needs. Climate financing should complement efforts to promote development in accordance with national priorities and may include both program-based and project-based approaches. The governance of mechanisms disbursing funds should be transparent, fair, effective, efficient, and reflect balanced representation. Accountability in the use of resources should be ensured. An arrangement to match diverse funding needs and resources should be created, and utilize where appropriate, public and private expertise. We agreed to further consider proposals for the establishment of international funding arrangements, including the proposal by Mexico for a Green Fund.

5. Our countries will continue to work together constructively to strengthen the world's ability to combat climate change, including through the Major Economies Forum on Energy and Climate. In particular, our countries will continue meeting throughout the balance of this year in order to facilitate agreement in Copenhagen.

G8 or G20 – will it really make much difference to the world?The head of policy at ActionAid questions whether bigger summits will be any better for the world's poorest countries guardian.co.uk, Sunday 5 July 2009 00.05 BST

Is there any point to the continued existence of G8? As this week's summit looks increasingly irrelevant, should we care if the power shifts away to the G20?

President Lula of Brazil has declared that G8 doesn't have any reason to exist. Next year's hosts, Canada, are being urged by their own commentariat to turn their G8 into a G20. Meanwhile this year's hosts, Italy, are trying to bring more countries into the G8 tent, to reduce the glaring gap between the two. In doing so, they are basically accepting the logic that it's the wrong group of countries to have in the room to address the problems of the world.Despite the attractions of inclusivity, I have fears that the transfer of power from G8 to G20 might prove more style than substance. G20 leaders need to show they are more willing than G8 have been to take actions that matter for the world's poorest.The G8's scope seems to be narrowing, with substantive issues increasingly kept for the G20. The big question for the L'Aquila summit is who is keeping the promises they made at Gleneagles in 2005 (not Italy, despite Berlusconi being the only leader in this year's crop who was actually there).And in the meantime, the shiny new G20 is waiting in the wings. The second meeting of G20 leaders in September to discuss the global financial crisis will be presided over by the world's favourite man, Barack Obama, and will quite likely be able to bask in the glory of success, if the tentative signs of recovery continue to be felt.

At the very least the current situation seems a little inefficient. Two summit dinners. Two rounds of official entertainment laid on for the long-suffering group of G8 spouses. Two huge logistical nightmares for the organising country. And all to pursue what is essentially one agenda of trying to unravel the mess of global governance and the outrage of global poverty by squaring the circle of what poor countries want and what rich countries are prepared to give up.So why bother? Just read the last rites, declare the show over for the G8, and let the G20 take its rightful place as the photo opportunity of choice for world leaders.Of course, there would be more competition for the prized spot on Obama's righthand side in the group photocall. But think of the kudos, in these austerity-obsessed times, that G8 leaders could get by cutting out a whole swathe of expensive and increasingly pointless diplomacy – no more stories about what they had for dinner or how much the whole thing cost. Instead, a mature and sensible decision to give up their privileged and exclusive position for the good of global democracy.That's not quite the end of the matter. The G20 might be, numerically speaking, two and a half times as democratic as the G8, and many hopes for a better world are resting on that fact. But it's still not exactly a bastion of democracy. The majority of the world's countries are still out of the club. And having got in, many of the newly anointed global leaders don't seem willing to widen the net further. Exclusivity can look pretty good from the inside.

From the point of view of the countries outside the room, the difference between the G8 and the G20 might seem a little academic. What they need is a group that will keep its promises. Whether on aid or on climate change or on tax havens, what the poorest countries need is for the richest countries – however they organise themselves – to make the right choices and then stick to them.If the bigger size of the G20 means better decisions, because more different points of view are represented and, most crucially, because leaders are more likely to force one another to keep their promises, that's when the shift from eight to 20 will start to make an actual difference to the world.Basically, it's about rich countries being persuaded to give up a bit more money and power for the greater good. Can China and Brazil, for example, force the US to cough up more than the paltry $1bn it recently announced to help the poorest countries cope with the impact of climate change? Would South Africa be any more successful than the UK in making Italy keep its promises on foreign aid? Will the combined weight of India, China, Brazil and South Africa be enough to force the US to give up its position as the world's banker by backing a new reserve currency? Unless the answer to any of these questions is yes, the supposed big shift in global power embodied in the new-look G20 will be more hype than hope.Claire Melamed is head of policy at ActionAid.

Canadian commitment to IMF now in place for nations struggling with global economic crisis JULY 9,09

The Honourable Jim Flaherty, Minister of Finance, today announced his signing, along with International Monetary Fund Managing Director Dominique Strauss-Kahn, of a US billion borrowing agreement between Canada and the International Monetary Fund, the final step in providing the Fund with additional temporary resources for member countries requiring balance of payments assistance during the economic crisis.At the London summit in April, G20 leaders pledged to strengthen the international financial institutions vulnerable nations have relied on during this global turmoil, said Minister Flaherty. Canada joined other G20 countries at that summit in committing additional IMF loan resources to ensure emerging markets and developing countries have access to the capital they need, and I am very pleased that this financial contribution by Canada is now available.Minister Flaherty also confirmed Canada's formal ratification of amendments to the IMF's Articles of Agreement, endorsed by the membership in 2008. The quota and voice amendments are designed to better represent developing countries and more accurately reflect their weights in the global economy. The amendments will come into effect once three-fifths of IMF countries representing 85 per cent of the Fund's total voting power ratify them.The current economic and financial turmoil clearly demonstrates that international institutions must become more effective and better represent all members of the global economy—the world as it is, not as it once was,said Minister Flaherty.An IMF that better reflects the international economy of the 21st century has long been a priority for our Government, and Canada has played a leading role in spearheading reforms to this vital organization, including taking one of the largest voting share cuts of any country. The world today needs a stronger IMF more than ever, and Canada is proud to help make that happen.

ANALYSIS - Need for exit strategy sure to trouble G20
Thu Jul 9, 2009 5:59pm By Brian Love

ROME (Reuters) - Germany failed to secure harder commitments from Wednesday's G8 meeting on a post-crisis exit strategy for cutting public deficits, but the issue is sure to return to haunt leaders in the months ahead. Chancellor Angela Merkel made little of the matter in public but one official said she would make dealing with the cost of the huge stimulus committed since last year a big issue at a G20 summit in the United States in late September.Doing so is easier for the Germans, now reporting signs that the economy is emerging from recession and little touched by the banking and real estate calamities that have hounded policymakers in Britain and the United States.For now the consensus for most of the rest is to stay the course with vast injections of government money until the economy can cope without life support, and only thereafter turn to repairing the damage to public finances.Government deficits are forecast by the IMF to double this year to around 7 percent of GDP for advanced economies, and nerves about bond markets and a possible ballooning of the cost of funding deficits mean action will eventually be needed.Coordinating recovery efforts however remains a challenge for the G8 industrial powers, as well as between them and the large emerging market economies such as China and India, also in Italy for a three-day summit.There are still differences over the issue in the G8,said Andrei Bokarev, a Russian official involved in the summit. Some states believe it is too early for exit strategies.All the leaders managed to agree on, said Carl Weinberg of High Frequency Economics, is that the economy is in a mess.Response to the economic crisis will apparently be left for each nation to address in a manner appropriate to its own individual circumstances,he said in a commentary after the first day of a three-day meeting in L'Aquila.

NO EASIER

L'Aquila was considered by at least some of those attending as a pitstop between two bigger G20 summits, one that produced a battle plan for economic revival last April in London and a follow-up scheduled for Pittsburgh in late September.Maplecroft, a risk consultancy, says Japan and Italy top its list of the world's least fiscally sustainable countries and will come under intense pressure in future years even if the G8 commits to sustainable fiscal positions in the medium term.For other G8 countries, Germany ranked 21 on Maplecroft's Fiscal Risk Index of 178 countries, France rated 48, Britain 63, Russia 78, Canada 100 and the United States at 135.The G20 has gained legitimacy as a forum because it includes China, India and other fast-developing economies.But it is not necessarily a place where consensus is easier to achieve and climate talks on the first day of the three-day meeting in L'Aquila demonstrated the point.G8 leaders said they agreed to cut greenhouse gas emissions by 80 percent by 2050 but China and India, G20 members that were present in L'Aquila in any case, resisted G8 pressure to sign up to a halving of emissions at global level.

Dinesh Patnaik, an Indian negotiator, said developing countries want to see the rich nations commit to deep emission cuts in the shorter term and work out financial help for poorer countries cope with floods, heatwaves and rising sea levels.

SPEND FIRST, EXIT LATER

The G8 leaders said in a statement the worst of the global downturn may soon be over but that the economy remained fragile, recovery would be sluggish and vary in pace and strength from place to place.They hatched no new initiatives but that was to be expected when governments have yet to disburse much of the money promised to fend off a repeat of the Great Depression.Only 10 percent of the $787-billion U.S. stimulus package, for example, has actually been disbursed so far, according to U.S. senate majority leader Harry Reid.Angel Gurria, head of the Organisation for Economic Co-operation and Development, says the risk of relapse is real even if there are some signs of stabilisation.Countries like Germany should spend even more than the 81 billion it says it is devoting to stimulus measures, he says, noting that global stimulus is estimated to be worth two percent of GDP but that this marks big efforts by some and not others.Lack of coordination has already dampened the effectiveness of the stimulus packages, and policymakers should have learnt that lesson, said Marco Annunziata, chief economist at UniCredit, a large European bank.Instead it really seems to be the case that international cooperation is something to be reluctantly accepted in emergencies, but that can quickly be dispensed with once the emergency is over.

Implementing the G20 deal on IMF drawing rights and gold sales
08 July 2009

In April 2009 the G20 agreed to channel $750 billion through the IMF to combat the financial crisis. Of the $750 billion, $500 billion is supposed to be provided by rich countries on-lending to the IMF through the New Arrangements to Borrow (NBAs) and $250 billion by an issuance of Special Drawing Rights (SDRs) – the IMF’s reserve asset.Of the promised $500 on-lending by rich countries, over $420 billion have already been committed, though very little has been actually transferred. In July 2009Fund staff and board members are trying to figure out how to implement the agreements on SDRs and gold sales.The $250 billion issuance of SDRs and the sale of some of IMF gold reserves are proving difficult to implement.The Treaties Department at the IMF is working on technical options for both. The IMF Executive Board is due to discuss the paper by the end of July. On the gold sales, a paper was prepared by the staff before the Spring Meetings this year outlining a number of options which could allow using the proceeds of gold sales to subsidise resources for low-income countries (see summary of this options below). However in April a second paper was requested from IMF staff when the Executive Board could not find an agreement on the issues presented. The Executive Board is aiming to take a final decision on both issues by the Annual Meetings taking place on 6th and 7th October in Istanbul (Turkey).

Special Drawing Rights

A general allocation of IMF SDRs is done according to countries’ quotas. This means the richest countries get the biggest share of the pie, since they hold the highest quotas. The US, therefore, gets over 16% of the total number of SDRs issued, Japan about 10% and so on. With the $250 billion allocation, only some $81 billion will go to developing countries, and only about $19 billion will go to low-income countries (about $10 billion for Africa – less than 5% of the total value of the SDRs being issued). G7 countries, which have many financing options already, are rewarded with over 45% of the SDRs.[1]Eurodad and other civil society groups have been calling for an enhanced used of SDRs to provide additional liquidity for developing countries and particularly for low-income countries. SDRs could be a reasonably good source of finance for developing countries as once allocated they can be converted into a hard currency (through voluntary arrangements with governments issuing hard currencies) and have no conditions attached.

Gold sales

The G-20 Communiqué has a section on gold sales [2] which proposes that the IMF allocate $1 billion of the proceeds from gold sales and other IMF income sources for low income countries. This would be used to leverage up to $6 billion in new concessional loans over the next three years. The remainder of the proceeds from IMF gold sales would be used to cover the IMF’s administrative budget. The proposal is ambiguous and the IMFC was expected to come up with further clarification at the Spring Meetings. Following a divisive discussion at the Executive Board few days before the Spring Meetings, the IMFC did not manage to come up with a consensus to use more gold sales for poor countries. [3] Movement on gold sales had been stalled for some weeks as the US Congress had to authorise the US representative to the IMF to vote on the gold sale. At the beginning of June, the US Congress passed a bill including $100 billion through the New Arrangements to Borrow (NAB), and the authorisation for the US representative at the IMF to back the sale of 400 tons of the IMF’s gold. This decision should have allowed progress towards reaching an agreement on gold sales.

Action alert!

The IMF Board will discuss how to proceed with the SDR allocation, the gold sales and the review of lending facilities for low-income countries in the upcoming. Therefore this is a crucial moment to influence IMF Staff and Executive Directors pushing for the options that we would like to see on the table.See below the link to the template advocacy letter spelling out key CSO demands on how the SDRs allocation and the IMF gold sales should be used to provide unconditional finance at reasonable terms for low-income countries. Feel free to translate it and change it as needed, to adapt it to demands in your national constituencies. It is crucial to reach European Executive Directors as soon as possible and before the end of July!
http://www.eurodad.org/whatsnew/articles.aspx?id=3780
--------------------------------------------------------------------------------
[1] From the G-20 communique, April 2, 2009: We have committed, consistent with the new income model, that additional resources from agreed sales of IMF gold will be used, together with surplus income, to provide $6 billion additional concessional and flexible finance for the poorest countries over the next 2 to 3 years. We call on the IMF to come forward with concrete proposals at the Spring Meetings.

[2] From the IMFC communiqué, April 23, 2009, To strengthen the global financial safety net in the face of this severe crisis, the Committee supports…doubling the Fund’s concessional lending capacity for low-income countries, while ensuring debt sustainability, and exploring scope for increased concessionality. Subsidies could be financed through a combination of bilateral contributions—possibly by new donors—and the Fund’s resources and income, including the use of additional resources from agreed gold sales, consistent with the new income model.

[3] For further details, see ActionAid factsheet on Special Drawing Rights (SDRs) and the Global Reserve System(2009)

Opinion The New Republic: The Case Against The G8
by Simon Johnson

From left, Japanese Prime Minister Taro Aso, Canadian Prime Minister Stephen Harper, U.S. President Barack Obama, French President Nicolas Sarkozy, Italian Prime Minister Silvio Berlusconi, Russian President Dmitry Medvedev, German Chancellor Angela Merkel, British Prime Minister Gordon Brown, Sweden's Prime Minister Fredrik Reinfeldt and European Commission President Jose Manuel Barroso stand for a group photo of G8 leaders at the G-8 summit in L'Aquila, Italy on Wednesday, July 8, 2009. AP NPR.org, July 9, 2009 · The G7 was originally conceived as a form of steering committee for the world economy (antecedents). Existing formal governance mechanisms, around the IMF and the UN, seemed too cumbersome (and too inclusive) during the 1970s, with the breakdown of fixed exchange rates, assorted oil shocks, and the broader shift of economic initiative towards Western Europe and Japan.And the G7 had some significant moments, particularly with regard to moving exchange rates in the 1980s. More broadly, behind the scenes, it served as a communication mechanism between the world's largest economies ("coordination" is a dirty word in G7 policymaking circles). And it was probably a good thing in the 1990s that Russia wanted to join the G7—hence the G8 once a year, although many of the most important technical meetings are just the G7.

But today, honestly, what's the point?

The L'Aquila summit seems likely to achieve nothing, i.e., nothing that could not have been agreed upon in a conference call among deputy ministers. Just because there's a communiqué does not mean it has any real content. Does this kind of expensive pageant make politicians today look important or frivolous? More broadly, three longer-run shifts mean the G7/G8 is increasingly anachronistic.First, emerging markets have obviously risen in both respectable clout and ability to make trouble. China's exchange rate policy is a leading example, but think also about Mexico, Brazil, or India. Having a global economic discussion (e.g., on climate change or aid to Africa) without these players fully at the table does not really make sense—particularly as the G20 now operates effectively at the heads of government level. And inviting these countries to a dinner or other event on the fringes of the main meeting just adds insult to injury.Second, the Europeans are now organized into a loose political union and all of the major economies—except the UK—are in a currency union. What is the point of sitting down with Italy, Germany, France, and the UK separately? It is much more effective when they—and other Europeans—work out common positions and bring those to the table collectively. The European Union belongs to the G20 but not the G7. Third, the idea that the U.S. and its allies lead by any kind of economic policy example is plainly in disarray. The recent crisis focuses our attention, but we've seen two or three decades with irresponsible credit and throwing fiscal caution to the winds across these countries. These countries traditionally position themselves as G7 models worth emulating; this message needs to be toned down.

President Obama obviously has a talent for diplomacy (e.g., at the April G20 summit). He should use the Pittsburgh G20 summit in September to transition away from the dated emphasis on the importance of a G7/G8 heads of government meeting (e.g., reduce the excessive display of nothingness, lower the hype, have it feed into the G20 more explicitly). Canada, chair of the G7 next year and usually very sensible on these kinds of issues, can help.The G7 is still a useful forum for senior staff meetings on some technical issues, but it would be much more appropriate and effective for the high profile pinnacle organization to be the G20, not the G7.

G-8 COOLING THE PLANET
http://www.youtube.com/watch?v=Bt8OwcK2DfU&feature=player_embedded

EU parliament has equal power to member states
HONOR MAHONY Today JULY 9,09 @ 09:07 CET

EUOBSERVER / BRUSSELS - The European Parliament is on a level power footing with member states in the EU's complex institutional triangle after years of being a mere afterthought for EU governments, its outgoing president has said.Urging his successor to keep up the fight to defend parliament's interests, German conservative Hans-Gert Poettering on Wednesday (8 July) said: We are very successful now as European Parliament to be as equal partners of the council.He suggested that the parliament already has the upper hand over the commission, because it only comes into office …once we have voted in favour.This institutional link for controlling the council is missing Mr Poetterig said, but parliament should be ambitious to increase MEPs' powers towards member states.Looking back to 30 years ago, when he was first elected, he noted that the assembly had zero legislative competence and now it is responsible for 75 percent of legislation.His words come as the parliament stands to gain even more law-making power if the EU's new institutional rules, the Lisbon Treaty, enters into force in the coming months.In addition, the parliament has just thwarted member states' plans to secure a quick vote on the nomination of the next European Commission president, arguing that it should not be treated as a rubber stamp institution. The vote is now set to take place in September and not July.The move builds on an important parliament victory in 2004 when it forced the withdrawal of Italy's commission candidate on the grounds that his personal views on social issues were unsuitable for the post which he was aiming for.Since the 2004 move both the commission and the council are careful to pay public respect to the institution, and, unlike in previous years, no longer take it for granted or ignore it altogether.Mr Poettering's remarks were directed at Jerzy Buzek, a centre-right Pole, who is likely to be voted in as his successor next week.

New broom

For his part, Mr Buzek, a former prime minister, said that streamlining the way parliament works is urgent pointing to tightening up the way committees (where most of the legislative work is done) function and following through on questions posed by MEPs.He said there should be as few first reading agreements as possible, noting that this does not allow enough proper dialogue on the issues. Second reading agreements considerably prolong the length of time laws take to get through the Brussels system. Parliament has one reading on legislation that is not considered controversial or if it is under timetable pressure.The Polish MEP, taking part in a presidential debate, also suggested that parliament should meet with the European Commission president every month so it can influence its work.He also promised not to ignore the eurosceptics, who will have a stronger voice in this legislature. Eurosceptics are very important to us because they pick up our failings,he noted.

MEPs carve up top jobs in new parliament
ANDREW RETTMAN Today JULY 9,09 @ 13:57 CET

EUOBSERVER / BRUSSELS - German centre-right MEP Herbert Reul is being tipped to chair the EU parliament's industry committee, as political groups haggle over jobs following last month's elections.The industry appointment would ring alarm bells in Brussels' pro-green community, with Mr Reul noted for his scepticism on the human impact on global warming.Given the available scientific evidence and the ongoing discussion, we should be careful to point only to one cause for climate change, Mr Reul told this website.The industry committee is the EU assembly's most powerful law-making unit. But Mr Reul's job is not a done deal, with fellow German conservative Christian Ehler also making a strong bid for the post as talks continue.The parliament distributes appointments on the basis of the d'Hondt system, named after a Belgian mathematician. The method gives first choice of the best committees to the largest political groups and to the largest national delegations within the groups.

The centre-right EPP group has also earmarked the prestigious foreign affairs committee, the EU budget unit, the legal affairs committee, culture and education, fisheries, regional development and a sub-committee on security and defence.As things stand on Thursday (9 July), Italian MEP Mario Mauro is to get foreign affairs as a consolation prize for backing out of the parliament president race. Frenchman Alain Lamassoure, a former aide of French president Nicolas Sarkozy, is to run the EU budget cell. Germany's Klaus-Heiner Lehne is to run legal affairs and fellow German Doris Pack may get culture.

Reul vs. Leinen?

The centre-left PES group, the second largest faction, is currently plumping for the heavyweight environment committee, agriculture, constitutional affairs, employment, transport, civil liberties and a sub-committee on human rights. Mr Reul's potential antagonist on environment is shaping up to be German socialist Jo Leinen, a lawyer who took part in anti-nuclear industry protests in the 1980s and who recently chaired the constitutional affairs committee.Mr Leinen may be keen to stick to constitutional affairs however, a juicy subject due to the advent of the Lisbon treaty, a re-edited EU constitution.French centre-left MEP Pervenche Beres is to get employment. Brit Brian Simpson is to chair transport and Spain's Juan Lopez Aguilar is to run civil liberties.The socialists' stewardship of the civil liberties and human rights units, previously run by the liberal and green groups, could see muted criticism of human rights abuses in Russia. PES voted against a recent parliament resolution to equate Communist and Nazi crimes in a European rememberance day.

Free-marketeers

The third largest group, the liberal and pro-free markets ALDE faction, has been left with a financial portfolio.The economic and monetary affairs committee is to go to British liberal Sharon Bowles and the temporary sub-committee on the financial crisis is to be chaired by German liberal Wolf Klinz. ALDE is also tipped to run the budgetary control unit, which oversees EU spending.The new eurosceptic group spearheaded by the British Conservative party is likely to scoop the influential internal market and consumer affairs cell and the more marginal petitions committee.

The Green group (France's Eva Joly) is set to take the development committee, leaving women's rights to the far-left GUE faction.Two other senior MEPs are to be rewarded with the leadership of important international delegations. German conservative Elmar Brok may take over as head of the US mission. And former ALDE leader Graham Watson could get to chair China visits.Committee members will be decided next week during the parliament's first plenary session. The committees will vote on their presidents the week after.

REVELATION 13:16-18
16 And he(FALSE POPE) causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads:(CHIP IMPLANT)
17 And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name.
18 Here is wisdom. Let him that hath understanding count the number of the beast: for it is the number of a man; and his number is Six hundred threescore and six.(6-6-6) A NUMBER SYSTEM

INTERNET SHOULD NEVER HAVE EXISTED-ROCKEFELLER
http://www.youtube.com/watch?v=Ct9xzXUQLuY&feature=player_embedded
REBECCA CARLEY ON EFFECTS OF VACCINE ON YOU
http://www.youtube.com/watch?v=RInjqa04njg&feature=player_embedded
http://www.infowars.com/dr-rebecca-carley-effects-of-vaccines-on-the-immune-system/

Blitz of Cyber Attacks as Rockefeller Bill Approaches
Kurt Nimmo Infowars July 8, 2009

A determined propaganda blitz is well underway as the government sets the stage for the passage of Cybersecurity Act of 2009, introduced in the Senate earlier this year. If passed, it will allow Obama to shut down the internet and private networks. The legislation also calls for the government to have the authority to demand security data from private networks without regard to any provision of law, regulation, rule or policy restricting such access. In other words, the bill allows the government to impose authoritarian control over electronic communications.Senator Rockefeller muses that we’d all be better off if the internet never existed. Earlier today, the corporate media reported on a powerful attack that overwhelmed computers at U.S. and South Korean government agencies,allegedly launched by North Korea.South Korean intelligence officials believe the attacks were carried out by North Korea or pro-Pyongyang forces,the Associated Press reported.It should be noted that South Korea’s intelligence apparatus — known as the Korean Central Intelligence Agency — was formed under the auspices of the U.S. Army’s Counter Intelligence Corps during the Korean War and is notorious for intervening in that country’s politics and kidnapping Koreans living abroad and torturing them. In other words, anything South Korean intelligence tells the corporate media should be taken with a large grain of salt.

According to security experts analyzing the attacks,Obama’s White House, the Pentagon, the New York Stock Exchange, the National Security Agency, Homeland Security Department, State Department, the Treasury Department, Federal Trade Commission and Secret Service, the Nasdaq stock market and The Washington Post were targeted.All of this is happening as Senate Commerce Chairman John (Jay) Rockefeller —who has said we’d all be better off if the internet was never invented — plans a committee vote on cybersecurity legislation he introduced in April with Sen. Olympia Snowe, R-Maine.Under Rockefeller’s bill, the White House would be required to create an Office of the National Cybersecurity Adviser within the Executive Office of the President as well as an advisory panel of experts from industry, academia and the globalist NGOs, according to Congress Daily.In May, Obama pledged to personally select a cyber czar who would report to the National Security Council and National Economic Council.

Copyright laws threaten our online freedom By Christian Engström
Published: July 7 2009 18:10

If you search for Elvis Presley in Wikipedia, you will find a lot of text and a few pictures that have been cleared for distribution. But you will find no music and no film clips, due to copyright restrictions. What we think of as our common cultural heritage is not ours at all.On MySpace and YouTube, creative people post audio and video remixes for others to enjoy, until they are replaced by take-down notices handed out by big film and record companies. Technology opens up possibilities; copyright law shuts them down.

EDITOR’S CHOICE
Curb on content threatens France Telecom - Jul-07E-retailers find big brands hard to touch - Jul-07This was never the intent. Copyright was meant to encourage culture, not restrict it. This is reason enough for reform. But the current regime has even more damaging effects. In order to uphold copyright laws, governments are beginning to restrict our right to communicate with each other in private, without being monitored.File-sharing occurs whenever one individual sends a file to another. The only way to even try to limit this process is to monitor all communication between ordinary people. Despite the crackdown on Napster, Kazaa and other peer-to-peer services over the past decade, the volume of file-sharing has grown exponentially. Even if the authorities closed down all other possibilities, people could still send copyrighted files as attachments to e-mails or through private networks. If people start doing that, should we give the government the right to monitor all mail and all encrypted networks? Whenever there are ways of communicating in private, they will be used to share copyrighted material. If you want to stop people doing this, you must remove the right to communicate in private. There is no other option. Society has to make a choice.The world is at a crossroads. The internet and new information technologies are so powerful that no matter what we do, society will change. But the direction has not been decided.The technology could be used to create a Big Brother society beyond our nightmares, where governments and corporations monitor every detail of our lives. In the former East Germany, the government needed tens of thousands of employees to keep track of the citizens using typewriters, pencils and index cards. Today a computer can do the same thing a million times faster, at the push of a button. There are many politicians who want to push that button.The same technology could instead be used to create a society that embraces spontaneity, collaboration and diversity. Where the citizens are no longer passive consumers being fed information and culture through one-way media, but are instead active participants collaborating on a journey into the future.

The internet it still in its infancy, but already we see fantastic things appearing as if by magic. Take Linux, the free computer operating system, or Wikipedia, the free encyclopedia. Witness the participatory culture of MySpace and YouTube, or the growth of the Pirate Bay, which makes the world’s culture easily available to anybody with an internet connection. But where technology opens up new possibilities, our intellectual property laws do their best to restrict them. Linux is held back by patents, the rest of the examples by copyright.The public increasingly recognises the need for reform. That was why Piratpartiet – the Pirate party – won 7.1 per cent of the popular vote in Sweden in the European Union elections. This gave us a seat in the European parliament for the first time.Our manifesto is to reform copyright laws and gradually abolish the patent system. We oppose mass surveillance and censorship on the net, as in the rest of society. We want to make the EU more democratic and transparent. This is our entire platform. We intend to devote all our time and energy to protecting the fundamental civil liberties on the net and elsewhere. Seven per cent of Swedish voters agreed with us that it makes sense to put other political differences aside in order to ensure this.Political decisions taken over the next five years are likely to set the course we take into the information society, and will affect the lives of millions for many years into the future. Will we let our fears lead us towards a dystopian Big Brother state, or will we have the courage and wisdom to choose an exciting future in a free and open society? The information revolution is happening here and now. It is up to us to decide what future we want.
The writer is the Pirate party’s member of the European parliament.The Financial Times Limited 2009

STORMS HURRICANES-TORNADOES

LUKE 21:25-26
25 And there shall be signs in the sun, and in the moon, and in the stars; and upon the earth distress of nations, with perplexity;(MASS CONFUSION) the sea and the waves roaring;(FIERCE WINDS)
26 Men’s hearts failing them for fear, and for looking after those things which are coming on the earth: for the powers of heaven shall be shaken.

Blanca weakens to tropical depression in Pacific Elliot Abrams AccuWeather Wed Jul 8, 4:50 pm ET

MEXICO CITY – Tropical Storm Blanca was downgraded to a tropical depression off Mexico's Pacific Coast and continued to weaken further on Wednesday.Forecasters at the U.S. National Hurricane Center in Miami say the system is expected to head over cooler waters, losing even more steam over the next day or two.Blanca was located about 720 miles (1,160 kilometers) west-southwest of the tip of the Baja California Peninsula, and was heading west-northwest at 10 mph (16 kph).The storm had maximum sustained winds near 30 mph (45 kph).

Canada to spend C$5 billion on military vehicles Wed Jul 8, 2:55 pm ET

TORONTO (Reuters) – Canada will spend about C$5 billion ($4.3 billion) on light armored vehicles for its military, the government said on Wednesday.

About C$1 billion will be used to upgrade the current fleet of light armored vehicles, with the remainder to go toward a new generation of combat vehicles and their upkeep.The Canadian Forces will start using the new vehicles by 2012, with a fully operational fleet intended for 2015.The government is committed through its Canada First Defense Strategy to renewing the Canadian Forces' core equipment, Defense Minister Peter MacKay said in a statement.In addition to a renewed commitment to domestic security, this defense investment creates jobs, brings economic benefits to Canadian industry, and creates and sustains long-term employment for Canadians.

The government said it is currently looking at procurement strategies and specific requirements for the projects. It said all winning contractors will be required to spend one dollar in Canada for every contract dollar awarded.General Dynamics Land Systems - Canada, a unit of U.S.-based General Dynamics, which developed the military's current fleet of LAV IIIs, will work with the government to upgrade the current fleet.Contracts for three new fleets of combat vehicles are expected to be awarded for 2011. The government said the new fleets would include close combat vehicles, tactical armored patrol vehicles, and force mobility enhancement vehicles.

The government said it would award contracts for the manufacture and assembly of the vehicles as well as for engineering and support services over the next 25 years.
(Reporting by John McCrank; editing by Rob Wilson)

DOCTOR DOCTORIAN FROM ANGEL OF GOD
then the angel said, Financial crisis will come to Asia. I will shake the world.

JAMES 5:1-3
1 Go to now, ye rich men, weep and howl for your miseries that shall come upon you.
2 Your riches are corrupted, and your garments are motheaten.
3 Your gold and silver is cankered; and the rust of them shall be a witness against you, and shall eat your flesh as it were fire. Ye have heaped treasure together for the last days.

REVELATION 18:10,17,19
10 Standing afar off for the fear of her torment, saying, Alas, alas that great city Babylon, that mighty city! for in one hour is thy judgment come.
17 For in one hour so great riches is come to nought. And every shipmaster, and all the company in ships, and sailors, and as many as trade by sea, stood afar off,
19 And they cast dust on their heads, and cried, weeping and wailing, saying, Alas, alas that great city, wherein were made rich all that had ships in the sea by reason of her costliness! for in one hour is she made desolate.

EZEKIEL 7:19
19 They shall cast their silver in the streets, and their gold shall be removed: their silver and their gold shall not be able to deliver them in the day of the wrath of the LORD: they shall not satisfy their souls, neither fill their bowels: because it is the stumblingblock of their iniquity.

REVELATION 13:16-18
16 And he(FALSE POPE) causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads:(CHIP IMPLANT)
17 And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name.
18 Here is wisdom. Let him that hath understanding count the number of the beast: for it is the number of a man; and his number is Six hundred threescore and six.(6-6-6) A NUMBER SYSTEM

WORLD MARKET RESULTS
http://money.cnn.com/data/world_markets/

HALF HOUR DOW RESULTS THU JULY 09,2009

09:30 AM +4.01
10:00 AM +13.07
10:30 AM -10.51
11:00 AM -0.91
11:30 AM -12.29
12:00 PM -3.10
12:30 PM +7.78
01:00 PM -10.73
01:30 PM +16.02
02:00 PM +15.42
02:30 PM +29.35
03:00 PM +17.76
03:30 PM -1.21
04:00 PM +4.76 8183.17

S&P 500 882.68 +3.12

NASDAQ 1752.55 +5.38

GOLD 911.80 +2.50

OIL 60.43 +0.29

TSE 300 9773.92 +120.47

CDNX 1042.82 +8.80

S&P/TSX/60 592.20 +7.05

MORNING,NEWS,STATS

YEAR TO DATE PERFORMANCE
Dow -6.81%
S&P -2.62%
Nasdaq +10.79%
TSX Advances 334,declines 1,238,unchanged 243,Volume 2,503,195,995.
TSX Venture Exchange Advances 248,Declines 593,Unchanged 362,Volume 244,813,349.

Dow +42 points at 4 minutes of trading today.
Dow -30 points at low today.
Dow +49 points at high today so far.
GOLD opens at $913.40.OIL opens at $60.65 today.

AFTERNOON,NEWS,STATS
Dow -30 points at low today so far.
Dow +49 points at high today so far.

DAY TODAY PERFORMANCE - 12:30PM STATS
NYSE Advances 2,232,declines 1,268,unchanged 104,New Highs 8,New Lows 36.
Volume 2,288,042,063.
NASDAQ Advances 1,444,declines 1,054,unchanged 107,New highs 9,New Lows 24.
Volume 852,773,592.
TSX Advances 796,declines 487,unchanged 241,Volume 1,013,074,419.
TSX Venture Exchange Advances 271,Declines 235,Unchanged 295,Volume 73,188,200.

WRAPUP,NEWS,STATS
Dow -34 points at low today.
Dow +49 points at high today.
Dow +0.06% today Volume 192,660,948.
Nasdaq +0.31% today Volume 1,800,086,029.
S&P 500 +0.35% today Volume N/A

GOOGLE SEARCH BOSS
http://video.forbes.com/recentVideo
OBAMA-MEDVEDEV MEETING
http://www.cnbc.com/id/15840232?video=1175913251&play=1
OIL SPECULATORS UNDER PRESSURE
http://www.cnbc.com/id/15840232?video=1175857682&play=1
http://www.cnbc.com/id/15840232?video=1175860513&play=1
CYBER ATTACK ON S KOREA
http://www.cnbc.com/id/15840232?video=1175898942&play=1
G-8 EMERGING MARKETS
http://www.cnbc.com/id/15840232?video=1175480108&play=1

Anxiety over economic recovery weighs on stocks By SARA LEPRO, AP Business Writer – Wed Jul 8, 6:34 pm ET

NEW YORK – Investors can't shake their worries that the economy won't recover by the end of the year.Stocks finished mostly lower after zigzagging for much of the day Wednesday. A mixed outlook on the economy from the International Monetary Fund and falling commodity prices added to the downbeat mood.That tone could improve Thursday thanks to a narrower-than-expected loss from Alcoa Inc., which ushered in the second quarter earnings season after the closing bell Wednesday. The aluminum producer's shares rose 6 percent in after-hours trading.Traders also will also be watching retail sales figures coming out Thursday to see if slippage in consumer confidence translated into a weaker take at cash registers.Another tumble in oil prices dragged energy shares lower on Wednesday and reflected concerns that demand for resources will remain weak as the economy struggles. More stocks fell than rose on the New York Stock Exchange, but major indicators ended mixed.Stocks drew some support from a strong auction of 10-year Treasury notes. That helped allay one of the market's recent worries, that the government would have trouble finding enough buyers for the massive amount of debt it's issuing. Treasury's also benefited from safe-haven buying because of concerns about the economy.After sending stocks soaring this spring on the belief that the economy was turning around, investors have put their buying on hold since mid-June as several pieces of disappointing economic data eroded the case for a quick recovery.There's nothing to get people to jump into the market, said Kurt Karl, chief U.S. economist at Swiss Re. Nothing to get them excited.

The Dow Jones industrials rose 14.81, or 0.2 percent, to 8,178.41.The broader Standard & Poor's 500 index fell 1.47, or 0.2 percent, to 879.56 and the Nasdaq composite index rose 1.00, or 0.1 percent, to 1,747.17. Both the Dow and S&P 500 hit levels not seen since May 1.The market has already digested the most recent batch of economic news, including worse-than-expected reports on employment and manufacturing, and is becoming anxious ahead of second-quarter earnings season and the forecasts from companies that are sure to be the next big test for stocks.Many analysts say a recovery is indeed on its way — investors just need to be more realistic about its pace.At least for the first year of the expansion we're likely to see quite anemic growth,said Avery Shenfeld, chief economist at CIBC World Markets.The message is to be patient. The broader rise in equities that we've seen since the spring will eventually prove to be warranted.The IMF said Wednesday it expects the world economy to shrink by 1.4 percent in 2009, slightly worse than its earlier estimate of 1.3 percent. But it boosted its estimate for global economic growth in 2010 to 2.5 percent, up from its April projection of 1.9 percent.Meanwhile, oil prices fell for a sixth straight day, dropping $2.79 to settle at $60.14 a barrel, tumbling sharply from an eight-month high of $73 in just one week.The falling price of oil has contributed to selling on world exchanges over the past week. On Tuesday, the major U.S. indexes lost at least 2 percent, including the Dow, which fell 161 points.Both the Dow and the S&P 500 have shed 7 percent since their recent highs on June 12. Though the weak volume that has marked trading in recent weeks shows little conviction behind the selling, analysts say the market is at risk for a further pullback if it doesn't soon get the good news it's looking for.This is a wave of realization,Karl said.We were pretty excited there for awhile and things were just quite a bit ahead of the actual fundamentals of the economy.Analysts note that investors have been shifting money out of industries they had sent sharply higher this spring, like financials and energy, and moving into more defensive areas like health care and consumer staples.

In other trading, the price of the benchmark 10-year Treasury note jumped about a point following the successful bond auction. That pushed its yield down sharply to 3.31 percent from 3.46 percent late Tuesday. That marks the lowest level for the 10-year yield since May 20.Treasury yields have softened in recent weeks after spiking in early June to an eight-month high of 4.01 percent. The drop in long-term yields since then is good for consumers because yields are closely tied to interest rates on mortgages and other consumer loans.The dollar mostly rose against other major currencies, while gold prices fell.About two stocks fell for every one that rose on the New York Stock Exchange, where consolidated volume came to 5.9 billion shares compared with 4.6 billion Tuesday.The Russell 2000 index of smaller companies fell 4.57, or 1 percent, to 479.68.Overseas, Britain's FTSE 100 index fell 1.1 percent, Germany's DAX lost 0.6 percent and France's CAC-40 fell 1.3 percent. Japan's Nikkei stock average fell 2.4 percent.

Treasury picks 9 managers for toxic asset program By MARTIN CRUTSINGER and DANIEL WAGNER, AP Business Writers – Wed Jul 8, 7:03 pm ET

WASHINGTON – The Treasury Department on Wednesday selected nine financial firms as partners for a program to buy banks' soured, mortgage-related investments.Treasury officials said the program will try to relieve banks of up to $40 billion worth of these investments — complex securities whose value plummeted along with real estate prices. The amount Treasury has committed is far below the potential $1 trillion in assets that the government originally hoped to take off the banks' books through this program and another that would have targeted bad loans.About four months after it was announced, many analysts doubted whether the scaled-down program would have much impact since rising unemployment and loan defaults have eclipsed soured securities as threats to the financial sector.I'm not even sure the actual dollars will be that much,said banking consultant Bert Ely. Frankly, it's in the better interest of the banks' stockholders for banks to keep the bad assets rather than sell them, because the banks think they'll take a hit on the sale.The Public-Private Investment Program, or PPIP, will leverage private capital with government subsidies so the investment firms can buy up the soured mortgage-related assets that have made banks reluctant to lend freely to businesses and consumers.The problem assets helped spark the financial crisis as they lost value and banks became unable to sell them. They have been weighing down banks' balance sheets — one reason the industry has had trouble providing the credit necessary to support an economic recovery.Treasury said in a statement that it would invest up $30 billion in the program, matched by $10 billion from the private sector.The nine firms chosen Wednesday will be given up to three months to raise an initial $500 million each to begin participating in the program.

The investment firms are: BlackRock Inc.; TCW Group; AllianceBernstein, LP and its sub-advisers Greenfield Partners LLC and Rialto Capital Management LLC; Angelo, Gordon & Co. LP and GE Capital Real Estate; Invesco Ltd.; Marathon Asset Management LP; Oaktree Capital Management LP; RLJ Western Asset Management LP; and Wellington Management Co. LLP.They were among more than 100 firms that had expressed an interest in participating, according to Treasury.The program announced Wednesday will deal only with distressed securities, the bulk of them backed by mortgage-related assets. A separate program that would have auctioned off troubled bank loans, which was to be run by the Federal Deposit Insurance Corp., has been delayed indefinitely.Analysts said the impact of the scaled-down program is likely to be muted.The real hit lies in the trillions of dollars in residential home loans and commercial loans banks hold in whole-loan form on their balance sheets,said Daniel Alpert, managing director of the investment bank Westwood Capital LLC.Fears of a deeper recession, including rising unemployment and falling home values, raise the specter of massive defaults on consumer and commercial real estate loans, analysts said. The securities backed by mortgages and other complex assets to be targeted by PPIP are no longer as big a threat to the banking industry's stability.Now that most banks have enough capital on hand to withstand the risk posed by their bad assets, the program may end up serving a narrow niche, said Bradley Sabel, a partner at the law firm Shearman and Sterling in New York.Banks that already wrote down the values of the securities can afford to sell at the reduced prices investors are willing to pay, while banks that are very well capitalized might be willing to take those losses just to free up capital for other purposes, Sabel said.

Ten of the nation's biggest financial companies — including JPMorgan Chase & Co., American Express Co. and Goldman Sachs Group Inc. — last month got the go-ahead to return $68 billion in federal bailout money, a development viewed as evidence that the financial sector was beginning to stabilize after benefiting from the government's $700 billion financial rescue fund.Given recent good news, PPIP appears to be more of a face-saving decision than a meaningful policy, said Simon Johnson, a former IMF chief economist now with the Massachusetts Institute of Technology's Sloan School of Business.But it could help establish a market for securities that have been impossible to price, said Harold Reichwald, of the law firm Manatt, Phelps & Phillips in Los Angeles. He said there isn't enough capital at traditional sources to get that market moving.The question is, how do we develop sufficient confidence and capital in the marketplace to make that happen,he said.This is the first step toward accomplishing that goal.Billionaire investor Wilbur Ross, whose firm is now a subsidiary of Invesco, said Tuesday on CNBC that banks will never break even on many of their troubled assets, but that the government plan will get them five-to-10 percentage points closer. In mid-April, Treasury announced that it was making it easier for hedge funds and other private investors to participate in the program, a move seen by analysts as an acknowledgment that investor interest had been lackluster.A week later, JPMorgan Chase & Co. CEO Jamie Dimon said the bank did not intend to participate because it did not need to.The Treasury Department played down the concerns, saying at the time that there would be significant interest from other banks.

Energy giants to challenge EU fine
LUCIA KUBOSOVA Today JULY 9,09 @ 09:30 CET

Major European gas suppliers, E.ON Ruhrgas and GDF Suez have said they are planning to challenge the EU executive's fine for cartel-type practices, announced on Wednesday (8 July).The European Commission, the EU's top regulator, slapped a €553 million fine each on Frances's GDF Suez SA and Germany's E.ON Ruhrgas AG for colluding on market share of natural gas in national markets.The penalty refers to a deal struck by the two companies back in 1975 not to sell Russian gas transported by the Megal pipeline to Germany and France in each other's markets, following their joint investment in the pipeline.According to the commission, the energy giants kept the deal in place even after the EU's gas markets were liberalised and only ended their arrangement in 2005.Market sharing is one of the worst types of antitrust infringement. This agreement deprived customers of more price competition and more choice of supplier in two of the largest gas markets in the EU, competition commissioner Neelie Kroes commented. She argued that the EU executive had no alternative to imposing high fines, so as to send a strong signal to energy incumbents that the commission will not tolerate any form of anticompetitive behaviour.But although analysts point out that it is the highest cartel penalty after the €896 million levy on French Glassmaker Cie de Saint-Gobain SA, it accounts for less than one percent of the companies' sales in 2008. Under EU law, Brussels is entitled to levy a maximum 10 percent fine.It's a significant fine, but if you look at the effect on the companies' fair value, it's relatively limited,Stephan Wulf, a Frankfurt-based analyst at Oppenheim Research GmbH told Bloomberg.There won't be any significant changes in the competitive environment as a consequence,he added.The companies indicated they are planning to fight the decision it shortly after the verdict was announced on Wednesday.

GDF Suez said it cannot accept the charges that have been made against it,and will be filing an appeal of the commission's decision with the European Union's Court of First Instance, according to Dow Jones. The German gas utility E.ON Ruhrgas also hinted it would try to advert the fine.E.ON Ruhrgas and GDF Suez are two of the largest players in the European gas industry, with the German supplier enjoying an €87billion turnover in 2008 and the French giant selling €68 billion worth of energy last year.

Brussels claims failed business model is causing online piracy
ANDREW WILLIS Today JULY 9,09 @ 17:22 CET

EUOBSERVER / BRUSSELS – The EU's telecommunications chief, Viviane Reding, blamed the current internet business model for the rise in online piracy on Thursday (9 July), during a speech in which she outlined a new medium-term strategy for a digital Europe.Ms Reding said the European Commission intends to open up a broad consultation period on the digital Europe strategy next month, but already she has indicated that a central part of the plan for the next five years will be to provide greater access to good quality online content. The debate over what can be legally downloaded from the internet has flared up in recent months, fuelled by proposed French legislation that would have allowed a new state agency, known by the acronym Hadopi, to shut down web access for up to a year for those downloading materially illegally. With the original proposal thrown out by the country's top court last month, adjusted legislation was approved by the French senate on Wednesday under which the final decision on cutting off web users has been moved from the state agency to the courts.

Other EU countries including the Netherlands are also looking at bringing in similar legislation. In my view, growing internet piracy is a vote of no-confidence in existing business models and legal solutions. It should be a wake-up call for policy-makers, said Ms Reding on Thursday, while studiously refusing to take sides.The Luxembourg politician, who is set to take up a record third term in the next European Commission, was speaking at an event hosted by the Brussels-based think-tank, the Lisbon Council.She said she regretted the extremely polarised debate on internet content and indicated that a main component of the commission's medium-term digital Europe strategy will be to create a consumer friendly legal framework for accessing digital content within the EU.A possible component of the new framework could be a simplified system of licensing intellectual property rights for content providers that would cover the whole union, she indicated. However the recently elected Swedish MEP, Christian Engstrom, whose Pirate Party campaigned in the European elections under a manifesto to improve access to content on the internet, says policy makers must move away from the idea of internet users as merely consumers.We are citizens …and we do have certain human rights according to the European convention on human rights which includes the right to information freedom, he told EUobserver. Blocking people's access from the internet is obviously in breach of article ten of the European convention, but still we see the EU introducing language which opens up that possibility,he added. The Pirate Party won one seat in the European parliament in last month's elections, and will gain another if the Lisbon Treaty is ratified as the number of MEPs will swell from 736 to 751.

Internet to drive economic growth

Ms Reding also said future European growth depended on harnessing the new generation of internet-savvy youngsters.My specific answer to the present economic downturn [is] Europe's digital economy, where private and public investors can expect a particularly good return on investment,she said.At present only 35 percent of EU citizens use advanced internet services such as social networking sites or the downloading of information, but the figure jumps to 73 percent for citizens aged between 16 and 24 years old. It is in this new generation that there is real growth potential for Europe,says Ms Reding, describing the age group as digital natives.The commission believes that as these individuals grow older and their purchasing power increases, greater internet use has the potential to create around one million jobs in Europe and generate €850 billion in economic activity.The claim is supported by a recent World Bank study that estimates every 10 percent of additional broadband penetration yields 1.3 percent in economic growth.

G8 agrees climate targets but wider deal unlikely
ANDREW WILLIS Today JULY 9,09 @ 09:26 CET

Leaders from the Group of Eight industrialised nations on Wednesday (8 July) agreed a list of targets designed to mitigate climate change. But prospects appear slim of securing a wider deal with developing nations – including some of the world's largest emitters. The G8 leaders meeting in L'Aquila, Italy, for three days of meetings (8-10 July), agreed they must contain global temperature rises to 2 degrees Celsius compared to pre-industrial levels, the first time the developed countries have formally committed to the target.Italian Prime Minister Silvio Berlusconi will be hoping the G8 meeting will deflect attention away from personal scandals (Photo: The
United Nations scientists say a 2 degree rise is the maximum that can be allowed if irreversible climate change is to be avoided. G8 leaders also said that world emission levels should be cut by 50 percent by 2050, and that to achieve this target, developed nations must cut emission levels by 80 percent in the same period. But the meeting's communiqué does not pin down an exact reference year, saying the targets should be reached by 1990 or more recent years,raising doubts over the exact levels of emission cuts.There is also no mention of mid-term targets, something European Commission President Jose Manuel Barroso had called for in a press conference before the meeting.

Wider deal?

Europe and the United States are in favour of cutting carbon dioxide emissions and will adopt a united stance vis-à-vis the emerging economies with a view to arriving at a pledge into which everyone must enter,Italian Prime Minister Silvio Berlusconi said after chairing the meeting.However securing a wider deal when the G8 leaders from Canada, France, Germany, Italy, Japan, Russia, UK and the US meet with developing nations on Thursday may prove to be difficult.Talks with Brazil, China, India, Mexico and South Africa – the G5 – are unlikely to convince the major developing countries to sign up to the 50 percent emissions cut target by 2050 without specific financial pledges from the richer countries to help them reach the target.The early departure of Hu Jintao also makes the prospects of securing a deal more unlikely. The Chinese president returned home on Wednesday to deal with the recent civil unrest in the western Xinjiang territory.Developed and developing countries will also meet in a larger 17-member format on Thursday afternoon, known as the Major Economies Forum, where US President Barack Obama will chair the meeting.

However British officials said there was no chance the wider format would agree to the G8 targets, reports the Financial Times.

Economy

On the economy, G8 leaders said signs of recovery were appearing but that many risks still remained.However there was little agreement over how to tackle rising unemployment and how quickly countries should claw back their rising budget deficits.

German Chancellor Angela Merkel and Swedish Prime Minister Fredrik Reinfeldt – whose country currently holds the EU presidency – both called for a timetable to reduce the deficits.Faced with a less severe downturn than other western countries, Canada also supports this view.My own thought is before there's talk of additional stimulus, I would urge all leaders to focus first on making sure the stimulus that's been announced actually gets delivered,said the country's Prime Minister, Stephen Harper, at the summit.The US, Japan, France and Britain resisted commitments to specific exit strategies until it is clear that the crisis is over, however.

G-8 Says Economic Recovery Too Weak to Withdraw Stimulus Effort By Helene Fouquet and James G. Neuger

July 9 (Bloomberg) -- Group of Eight leaders said the economic recovery from the steepest recession since World War II was too fragile for them to consider reversing efforts to pump money into the economy. President Barack Obama pressed for the door to remain open to more stimulus measures as a renewed stock-market drop stirred concern that $2 trillion spent worldwide so far hasn’t jolted consumers and businesses back to life. The G-8 needed to sound a second wakeup call for the world economy,British Prime Minister Gordon Brown told reporters yesterday in L’Aquila, Italy, after the opening sessions of the leaders’ annual gathering. There are warning signals about the world economy that we cannot ignore.Divergences over what to do next and calls from developing nations to do more to counter the slump underscored the G-8’s limited room for maneuver. The biggest borrowing spree in 60 years has failed to halt rising unemployment and left investors doubting the strength of the recovery. The MSCI World Index of stocks slid for a fifth day. The 23-nation index has dropped 8 percent since a three-month rally ended on June 2. Economies still need as much stimulus as possible,said David Page, an economist at Investec Securities in London.It’s important not to react too soon to early signs of a pickup or take false comfort from them.

IMF Forecasts

The International Monetary Fund echoed that skepticism, upgrading its 2010 growth forecast while saying the rebound will be sluggish and urging governments to stay the economic- stimulus course. Emerging countries like China will lead the way, expanding 4.7 percent next year, the IMF said yesterday, up from an April prediction of 4 percent. The Washington-based lender forecast growth of 0.6 percent in the advanced economies, up from expectations of stagnation.It’s a very volatile situation, European Commission President Jose Barroso said in a Bloomberg Television interview in L’Aquila.We are not yet out of the crisis, but it seems now that the free fall is over.In the U.S., a jump in the jobless rate to a 26-year-high of 9.5 percent in June and a 6.9 percent drop in the Standard & Poor’s 500 Index in the past month raised questions whether Obama’s $787 billion stimulus package is turning the world’s largest economy around.Democrats in Congress are split over whether to spend more, adding to a deficit that the IMF puts at 13.6 percent of gross domestic product in 2009, the highest since World War II.

Potentially Counterproductive

Obama straddled the issue yesterday, telling ABC News that spending more borrowed money is potentially counterproductive.A G-8 statement yesterday embraced options ranging from the second U.S. stimulus package some lawmakers and economists are advocating to Germany’s emphasis on shifting the focus to deficit reduction. Exit strategies will vary from country to country depending on domestic economic conditions and public finances,leaders of the eight economies -- U.S., Japan, Germany, Britain, France, Italy, Canada and Russia -- said in the statement. There is still uncertainty and risk in the system,Mike Froman, deputy U.S. national security adviser, told reporters in L’Aquila. While exit strategies can be drawn up, it’s not time to put them into place.Bank bailouts and recession-fighting measures will explode the debt of the advanced economies to at least 114 percent of gross domestic product in 2014, the IMF forecasts.

Exit Strategy

German Chancellor Angela Merkel is the leading opponent of additional stimulus, pushing through a statement at last month’s European Union summit that called for a reliable and credible exit strategy.Merkel, campaigning for reelection in September, has warned against billowing budget deficits, which will rise in the EU to an average of 6 percent of GDP in 2009 from 2.3 percent last year, the EU forecasts. We have to get back on course with a sustainable budget, but with the emphasis on when the crisis is over,Merkel said.The 16-nation euro economy has shown some signs of resilience since shrinking 2.5 percent in the first quarter, the most since the currency’s birth in 1999. While measures of business confidence, manufacturing and services have ticked up, job cuts by companies from Austrian Airlines AG to ThyssenKrupp AG pushed up unemployment to 9.5 percent in May, a 10-year high.

Canadian Prime Minister Stephen Harper occupied the middle ground, saying the first priority is to spend wisely what has already been committed. Before there’s talk of additional stimulus, I would urge all leaders to focus first on making sure that the stimulus that’s been announced actually gets delivered,Harper said.Russia, a G-8 member generally classified as an emerging economy, also believes that exit strategies have to be developed already now,said Andrei Bokarev, a Russian official. To contact the reporters on this story: Helene Fouquet in L’Aquila, Italy at hfouquet1@bloomberg.net; James G. Neuger in Rome at jneuger@bloomberg.net

G8 welcomes developing states, eyes climate and trade By Phil Stewart and Matt Falloon – Wed Jul 8, 7:53 pm ET

L'AQUILA, Italy (Reuters) – Leaders of the world's richest and main developing nations meet on Thursday to try to find common ground on global warming and international trade, with the poorer countries seeking concessions.U.S. President Barack Obama will chair the climate discussions, but hopes of agreeing ambitious goals have faded after China and India rejected demands to halve emissions of greenhouse gases by 2050.The talks take place on the second of a three-day Group of Eight summit, with discussions broadened to include the heads of new economic powerhouses in recognition that the world's problems can no longer be dealt with by an elite few.The fragile state of the global economy dominated the first day of the annual G8 summit, with the United States, Japan, Germany, France, Britain, Italy, Canada and Russia acknowledging there were still significant risks to financial stability.They also agreed to try to limit global warming to 2 degrees Celsius (3.6 Farenheit) above pre-industrial age levels and pledged to cut their greenhouse gas emissions by between 50 and 80 percent by mid-century.The 17-member Major Economies Forum (MEF), which groups the G8 plus big developing nations, also looks set to embrace the 2 Celsius goal on Thursday, but is balking at further commitments ahead of a decisive U.N. climate conference in December.Indian negotiators said developing countries first wanted to see rich nation plans to provide financing to help them cope with ever more floods, heatwaves, storms and rising sea levels.Temperatures have already risen by about 0.7 Celsius since the start of the Industrial Revolution ushered in widespread burning of fossil fuels, and Italy's prime minister said everyone should share the burden of tackling the problem.It would not be productive if European countries, Japan, the United States and Canada accepted cuts that are economically damaging while more than 5 billion people in other countries carried on as before,Silvio Berlusconi said.

ECONOMY, CURRENCIES, TRADE

Broader economic concerns will also be high on the agenda on Thursday, with emerging nations complaining they are suffering heavily from a crisis that was not of their making.China, India and Brazil have all questioned whether the world should start seeking a new global reserve currency as an alternative to the dollar. They have said they may raise this on Thursday after discussing it among themselves on Wednesday.

Indian Foreign Secretary Shivshankar Menon told reporters developing economies in the so-called G5 had suggested the use of alternative currencies to settle trade between themselves.The debate is highly sensitive in financial markets, which are wary of risks to U.S. asset values, and the issue is unlikely to progress very far in L'Aquila.However, a breakthrough on trade did look within reach.Diplomats say the G8 and G5 should agree to conclude the stalled Doha round of trade talks in 2010. Launched in 2001 to help poor countries prosper, they have stumbled on proposed tariff and subsidy cuts.We commit to reach a rapid, ambitious, balanced and comprehensive conclusion of the Doha Development Agenda, the G8 said in a joint statement on Wednesday.G5 nations issued their own statement, saying they would try to address any outstanding problems on trade talks and that a successful conclusion of Doha would provide a major stimulus to the restoration of confidence in world markets.But they also called on the world's richest nations to tear down trade barriers and restore credit to the poorest countries.(Writing by Crispian Balmer, editing by Ralph Gowling)

TOPWRAP 7-IMF sees 2010 recovery; G8 frets on sluggishness
07.08.09, 01:41 PM EDT By Darren Ennis and Jackie Frank

L'AQUILA, Italy/WASHINGTON (Reuters) - The slow climb out of the worst recession since World War Two will need solid support from government policies, the International Monetary Fund said Wednesday, as world leaders meeting in Italy fretted the recovery will not come fast enough.Wall Street stocks fell on lingering concerns about the nascent recovery and impact of unemployment and slow consumer spending as the second-quarter corporate earnings reporting season was about to begin. European shares posted losses led by financials, oil producers and automakers.Oil fell below $62 a barrel, with some analysts surmising the drop from last month's peak of $70 showed the economy was not yet out of the woods, and OPEC said world demand for its oil may take years to recover.In its latest World Economic Outlook, the IMF said economic growth could hit 2.5 percent in 2010, a more optimistic figure than the 1.9 percent reported in April. This year, it said, the global economy is likely to decline 1.4 percent, slightly steeper than the 1.3 percent contraction it saw in April. Expectations the recession is bottoming out in Europe's biggest economy received a boost with data showing German industrial output had bounced back strongly in May, up 3.7 percent, beating analysts' forecasts of a 0.5 percent gain.The dollar fell against the yen. The euro initially turned positive on the German data, though it later was down against the dollar and yen, despite the positive industrial growth forecast.

While the unprecedented policy intervention by world economic powers has allowed hope of recovery, the IMF warned against complacency. It suggested policy-makers focus on removing toxic debt from bank balance sheets and look toward tightening budgets in the medium term.Leaders of the Group of Eight industrial nations, meeting in Italy, essentially agreed, saying the recovery is not yet assured and that it is too soon to unwind economic growth packages. Significant risks still remain to economic and financial stability,according to a draft document by the G8 -- United States, Germany, Japan, France, Britain, Italy, Canada and Russia.Rounds of interest rate cuts and trillions of dollars in public funds have helped to prevent the deepest global recession in decades from turning into a depression.However, doubts that consumers and private businesses will be ready to ramp up spending prompted warnings from the IMF and others that governments would risk killing the recovery if they removed the life-line too quickly.It is far too early to declare the return of Germany's growth engine, said Carsten Brzeski, an economist at ING ( ING - news - people ) Financial Markets.The last two days were good news for the future stabilization of the German economy. For a sustainable recovery, however, much more of the same will be needed.Fears that steadily rising unemployment may strangle the budding recovery have prompted calls for even more spending.But White House budget official Robert Nabors told the U.S. Congress the Obama administration was not talking about a second stimulus package and would concentrate on implementing the $787billion stimulus already in place.White House spokesman Robert Gibbs said President Barack Obama was not ruling anything out, but at the same time he's not ruling anything in on another stimulus. He said Obama won't hesitate to take the steps necessary to help the economy. Some Democrats in Congress and an outside adviser to the president on Tuesday raised the possibility of another stimulus package.

FRAGILE RECOVERY

On the eve of the G8 summit, British Prime Minister Gordon Brown told Reuters that the world had to wake up to the scale of the downturn and stay focused on restarting growth, although Canada said existing measures must be implemented before any talk of further action.Signs of the fragility of the recovery were seen world financial markets, oil product stocks, currencies and exports.Lingering sluggish demand due to the weak economy was blamed for the higher-than-expected U.S. inventories of refined oil products in the week. Distillate supplies, including diesel and heating oil, hit a 25-year high.At the G8 meeting in L'Aquila, Italy, Russian President Dmitry Medvedev's spokeswoman said he called a $70-$80 per barrel price for oil fair but added that oil prices could not be regulated by government administration.European stock markets fell for a fifth day, and the lowest level in 10 weeks, with the FTSEurofirst 300 1.3 percent lower. London's FTSE 100 ended 1.1 percent lower -- 46.77points down at 4140.23, its third day of losses. Asian stocks tracked Wall Street's sharp Tuesday losses with Japan's Nikkei average sliding 2.4 percent to a six-week low on Wednesday.Encouraging data in recent weeks has been tempered by persistent signs of economic weakness, with China and Japan on Wednesday offering contrasting pictures.Chinese banks in June extended 1.53 trillion yuan ($223.9 billion) in loans as the government seeks to hit an eight percent growth target this year.In Japan, the value of its core private-sector machinery orders, a leading indicator of capital spending, slumped 3 percent in May to a record low, defying expectations of a rise. And company bankruptcies jumped more than 18 percent in June and were up 7.4 percent from a year earlier.A steep drop in exports and corporate investment led to euro zone economy contraction of a record 2.5 percent in the first three months of 2009, although depleted stockpiles in the 16-nation area raised hopes of a better second quarter. Britain said it will tighten up how it supervises banks, scrutinize bonuses paid to their employees and punish misconduct more severely to try to prevent a re-run of the credit crunch.The changes largely apply initiatives already underway at t the European Union and global level to improve supervision of system-wide risks and force banks to hold more capital to avert the need for future government bailouts. (Reporting by Reuters correspondents around the world; Writing by Jackie Frank; Editing by Tim Dobbyn)

US, other wealthy nations vow global warming cuts By CHARLES BABINGTON and NICOLE WINFIELD, Associated Press Writers JULY 8,09

L'AQUILA, Italy – Targeting global warming, President Barack Obama and other leaders of the world's richest industrial countries pledged Wednesday to seek dramatic cuts in greenhouse gas emissions by 2050 to slow dangerous climate change. Setting a marker for success, they agreed for the first time that worldwide temperatures must not rise more than a few degrees.However, their goals are nonbinding, and it's far from clear they will be met. The wealthy nations failed to persuade the leaders of big developing countries to promise to cut their own fast-spreading pollution, unable to overcome arguments that the well-established industrial giants aren't doing enough in the short term.Obama and his counterparts from the other wealthy Group of Eight nations agreed that global temperatures should be kept from rising by more than 2 degrees Celsius, or 3.6 degrees Fahrenheit, in the fight against weather changes caused by mankind.The results left some Western leaders cheering. British Prime Minister Gordon Brown called the group's statement a historic agreement.German Chancellor Angela Merkel said it was a clear step forward.Environmental groups said the effort fell far short in its bid to cut carbon emissions that come mainly from energy production and that trap heat in the atmosphere. Still, climate change experts said the measure on trying to limit temperature increases — with agreement by both the G-8 and a 17-member group of industrialized and developing nations meeting here this week — was an important step.An increase up to the limit the leaders set wouldn't eliminate the risk of runaway climate change but would reduce it, experts said. Even a slight increase in average temperatures could wreak havoc on farmers around the globe, as seasons shift, crops fail and storms and droughts ravage fields.

After a long struggle, all of the G-8 nations have finally accepted the 2-degree goal,said Merkel.The United States and other G-8 nations set a goal of reducing their greenhouse gas emissions by 80 percent or more by 2050. That's part of a plan to have all such gases, from rich and poor nations alike, fall by 50 percent globally by that year.But developing countries feel the better-established nations aren't doing enough in the shorter term. They also worry that major reduction commitments on their parts, even if below the 80 percent target of rich nations, would hamper economic growth in China, India, Mexico, Brazil and many other non G-8 countries.As for the target for limiting global temperatures, a summit statement said it reflected a broad scientific view.Until now, however, the U.S. had resisted embracing the target because it implied a commitment to dramatically change the way the world generates electricity, fuels its cars and builds its houses. U.S. businesses and the broader national economy could suffer badly under strict pollution limits, many argue.

Environmentalists welcomed the shift in U.S. policy but criticized the G-8's failure to agree on more immediate goals for the industrial countries. The long-term ambition is too far off to matter — poor people are being hit today,said Antonio Hill, of the nonprofit Oxfam International.The G-8 leaders also addressed the global recession and agreed economic conditions are still too shaky to begin rolling back massive fiscal stimulus plans.A statement said leaders note some signs of stabilization, but it stressed the difficult outlook instead of counter-concerns over debt and high spending.The leaders did commit to preparing exit strategies from the unprecedented and concerted action that has been taken to boost growth through government spending, low interest rates and expansive monetary policy. Germany, worried about running up crippling debt, has pressed for spending restraint, but other major economies including Britain, Japan and the United States won't rule out the need to pump in more money.The leaders gathered Wednesday in the earthquake-devastated central Italian city of L'Aquila, many arriving in electric cars and all welcomed by Italian host Premier Silvio Berlusconi. Over a long working dinner, they discussed world security issues ranging from Iran to North Korea.They emerged with a joint statement deploring government-backed violence and media restrictions in the aftermath of Iran's disputed election last month. The condemnation and concern were a far cry from the calls by some for something tougher, such as sanctions against Tehran or other action. In the face of Russian opposition, the Iran issue didn't even rate a statement separate from the other security issues, as had been expected.

Nonetheless, the Obama team and other leaders portrayed the statement as a victory in its unanimity.I think it's a strong statement and it reflects a real sense of urgency,said Williams Burns, Obama's undersecretary of state for political affairs.

Obama also announced at the dinner that he will host a nuclear security summit early next March in Washington. Around two dozen nations are expected to attend, to focus on nuclear terrorism, the black markets trade in nuclear materials and the detection and interception of materials in transit, said Obama adviser Mark Lippert. The abrupt return home from Italy of Chinese President Hu Jintao after ethnic tensions soared in China's western Xingjiang territory could weaken trust-building discussions on making further progress on climate change. He did leave a national delegation behind. China is among five developing market economies — along with Brazil, India, Mexico and South Africa — that are participating in the summit for the fifth straight year, joining the talks on Thursday to discuss aid and development. Also joining are nine African nations.The summit is also including a discussion of ways to expand the G-8 even further amid growing sentiment that the world's most-industrialized nations can no longer claim leadership on the global political and economic agenda. The G-8 document also calls for a rapid conclusion to the stalled Doha round of trade talks, but it doesn't set a deadline. That will be up for discussion on Thursday. The group's statement on the world economy calls for an enhanced global framework for financial regulation to help prevent future economic crises, but it fails to make any concrete proposals. Leaders say they will address issues such as executive pay, definition of capital, risk management and the regulation of hedge funds and credit rating agencies.Associated Press writers Alessandra Rizzo, Ben Feller, Colleen Barry and Emma Vandore in L'Aquila, and Dina Cappiello in Washington contributed to this report.

Euro zone Q1 contraction confirmed at 2.5 percent By PAN PYLAS, AP Business Writer – Wed Jul 8, 6:44 am ET

LONDON – Official figures confirmed that the 16 countries that use the euro saw output shrink by 2.5 percent in the first quarter of 2009 from the previous three month period as the global recession sapped the industrial exports that the euro zone relies on for growth.Though the final estimate left the quarterly rate unchanged, the annual decline was greater than anticipated. Gross domestic product in the euro zone fell by 4.9 percent in the first quarter compared with the same period in 2008 — slightly more than the previous reading of a 4.8 percent contraction.Eurostat confirmed that Germany, the euro zone's biggest economy, saw output plunge by a quarterly 3.8 percent as demand for its cars and factory machinery collapsed — its biggest economic contraction since at least 1970, when West Germany started to compile records.The euro zone has now seen output decline for four consecutive quarters. The first quarter slump is the biggest since figures began in 1995, but most analysts think the region is in its worst slump since the end of World War II.

The drop was bigger than the 1.4 percent decline recorded in the U.S., which is widely seen as the epicenter of the recession but less than the 3.8 percent drop recorded in Japan, the world's second largest economy.Many analysts argue that the European economy — like Japan's — is too dependent on exports as opposed to domestic demand, and that its policymakers have been slower than their counterparts in the U.S. in responding to the crisis with increased government spending.A more detailed look at the figures showed that a sharp decline inventories and investments hit the euro zone hard. In combination, they contributed to 1.8 percent of the 2.5 percent contraction. A fall in net exports on the back of a collapse in world trade contributed to a further 0.5 percent drop.The latest data show that the industry sector has taken the main brunt of the economic downturn — declining by a massive 8.5 percent in the first three months of the year alone,said Jorg Radeke, economist at the Centre for Economic and Business Research.This again underlines the region's exposure to export demand,he added.Including the 11 countries that are in the EU but not members of the euro zone, such as Britain and Sweden, the quarterly decline was confirmed at 2.4 percent. However, the annual decline was 4.7 percent, more than the 4.5 percent previously estimated.The biggest quarterly decline was recorded in Slovakia, which saw output slump by 11.4 percent amid falling demand for autos and a January shutoff of Russian natural gas, closely followed by Latvia's 11.2 percent fall. The only countries that did not see output fall were Poland, which saw GDP rise by a quarterly rate of 0.4 percent, and Cyprus, where economic activity stayed flat.

Most analysts think that the first quarter will mark the low point for the euro zone and the EU as a whole. Recent forward-looking economic indicators have suggested that the rate of decline has moderated, especially as companies look to restock after drawing down most, if not all, of their inventories.Also, the European Central Bank's big interest rate reductions, which have taken the benchmark refi rate down to a record low of 1 percent, should start to stimulate the economy, analysts said.

Hamas tries to detain woman walking with man By DIAA HADID, Associated Press Writer JULY 8,09

JERUSALEM – An attempt by Hamas police to detain a young woman walking with a man along the Gaza beach has raised alarms that the Islamic militant group is seeking to match its political control of the coastal territory with a strict enforcement of Islamic law.The man she walked with and two of his peers were detained, beaten and ordered to sign statements promising not to engage in immoral activities, said the woman and one of the men.The incident was the first known case of Hamas openly trying to punish a woman for behaving in a way it views as un-Islamic since seizing power two years ago. But it follows months of quiet pressure on Gaza's overwhelmingly conservative 1.4 million residents to abide by its strict religious mores.Hamas officials in Gaza have publicly urged shopkeepers to take down foreign advertisements showing the shape of women's bodies and to stash away lingerie often displayed in windows. Officials search electronic shops to check if they are selling pornography on tiny flash drives.There's an open, public program to preserve public morals in Gaza,said local rights activist Isam Younis. In reality that means trying to restrict freedoms.Hamas denies any crackdown is under way. Since taking power, it has said it would only try to lead by example and not impose its views on anyone.However, the group has taken no public action against small, shadowy groups that have attacked perceived hotbeds of Western immorality, such as hairdressers and Internet cafes, fueling criticism that it has not been tough enough on hard-line Muslim groups.

Freelance journalist Asma al-Ghoul says a group of Hamas police sent a clear message that certain behavior would not be tolerated when she went to the beach one evening in late June.Al-Ghoul, 26, said she was spending time with a group of friends — two women and three men — on the northern Gaza shore.Al-Ghoul is fairly exceptional in Gaza because she does not wear a Muslim headscarf. On that evening she wore jeans and a T-shirt — dress that is considered fairly provocative in Gaza's conservative society and which could have easily attracted the attention of the plain-clothed Hamas vice police who patrol the beaches.Al-Ghoul swam, fully dressed, with a girlfriend, and then asked a male friend to walk her over to a nearby beach house rented by another couple she knew to shower and change.Three policemen showed up and waited for al-Ghoul in the beach house garden, said an eyewitness who asked to remain anonymous because of security concerns. They took her identity card and demanded she accompany them to a nearby station — an order she refused.An argument ensued and she was able to avoid detention and get her identity card back only after the homeowner contacted a senior Hamas official who intervened and spoke to the officers by telephone. The official, Taher Nunu, was not immediately available for comment.The eyewitness said the police did not say why they wanted to detain al-Ghoul, but were insinuating that her behavior was unbecoming. Under Hamas' strict interpretation of Islamic law, a woman should not go out in public with men who are not related to her.

However, al-Ghoul said her male friends were subsequently beaten by Hamas police, detained for several hours and asked to sign statements saying they would not violate public moral standards again,she said.Al-Ghoul said she mostly felt angry that the police made her feel like she had done something wrong.I'm not provocative and my dress isn't provocative, and I'm not scandalous either,she said.Her story only became public after rights groups published excerpts on their Web sites. Her version of events was confirmed by two other witnesses, including Adham Khalil, one of the men who was detained. Khalil said he was beaten.Hamas police spokesman Islam Shahwan denied the incident took place but said Gaza residents must preserve our customs and Islamic traditions.

Netanyahu aide: US contrasting with Israel on Iran By ARON HELLER, Associated Press Writer – Wed Jul 8, 1:27 pm ET

JERUSALEM – Comments by President Barack Obama and Vice President Joe Biden about a possible Israeli attack on Iran's nuclear facilities were directed at Iran and meant to distinguish the U.S. from Israel, the Israeli premier's national security adviser said Wednesday.Also, American leaders are signaling Iran that the U.S. is still interested in diplomatic engagement, the adviser, Uzi Arad, told The Associated Press.

Speaking to ABC-TV on Sunday, Biden appeared to depart from his previous comment that an Israeli attack on Iran would be ill-advised, saying: Israel can determine for itself — it's a sovereign nation — what's in their interest and what they decide to do relative to Iran and anyone else.The following day, Obama in a visit to Moscow was asked by CNN if Biden's comment's represented the U.S. giving Israel a green light to attack.Absolutely not,the president replied.The next day, the chairman of the Joint Chiefs of Staff, Adm. Mike Mullen, warned that a military strike to thwart Iran's nuclear weapons capability could have grave and unpredictable consequences. Iran has denied trying to build nuclear bombs.Arad said the back-and-forth was an American message toward Iran, rather than Israel, noting that Biden also said in the interview,If the Iranians respond to the offer of engagement, we will engage.My understanding of what Biden said is that the second part is the interesting part — not that Israel is sovereign to act, but that he said the United States acts differently. Essentially, he distinguished himself from Israel, Arad said. What was important for him was to transmit to the Iranians that we, the United States, are different.Israel is uncomfortable with the attempt to open talks with Iran, fearing that this would give the Iranians more time to build their weapons. Israel has called for world action to stop the Iranian nuclear program and has not taken its own military options off the table.Arad said Obama's quick rebuttal was meant to clarify that the United States was still interested in engagement — despite prospects for dialogue being rattled by Iran's heavy crackdown on protesters in the country's disputed presidential election — and was not suggesting that his administration would not stand in the way of an Israeli strike.The president felt the need to correct the impression that Biden's comments made,he added.

Arad, one of Prime Minister Benjamin Netanyahu's top aides, said Israeli officials have often discussed the Iran issue in Washington.Israel considers Iran a strategic threat because of its nuclear program and missile development, dismissing Iranian denials that it intends to build nuclear weapons.Israel has been quiet publicly regarding its military intentions but has sent several signals to Iran.This week an Israeli submarine said by foreign experts to have the capability of carrying nuclear-tipped missiles returned to the Mediterranean after crossing to the Red Sea in the direction of Iran, a mission seen as a warning. Also, Israel has held air force maneuvers that were described unofficially as practicing an attack on Iranian targets.

Arad insisted that Israel's right to decide its own self defense is a right that the United States cannot take away from Israel, and doesn't try to.

Prince Charles warns of evironmental doom Wed Jul 8, 7:15 pm ET

LONDON (AFP) – Prince Charles warned Wednesday of environmental catastrophe, saying the world must urgently confront pressing green issues to avoid destroying our children's future.Charles, the heir to the throne, warned that today's consumer society comes at an enormous cost to the planet and we must face up to the fact that it was no longer sustainable.He also said that preserving and maintaining the world's ecosystems was inextricably linked to the economic well-being of nations.The prince, who has campaigned on safeguarding the rainforests and is known for his strong environmental views, set out his vision for tackling the threats facing the planet in a major speech at St James's Palace in London.Charles said we were at an historic moment -- because we face a future where there is a real prospect that if we fail the Earth, we fail humanity.To avoid such an outcome, which will comprehensively destroy our children's future, we must urgently confront and then make choices which carry monumental implications,he said.We are standing at a moment of substantial transition where we face the dual challenges of a world view and an economic system that seem to have enormous shortcomings, together with an environmental crisis -- including that of climate change -- which threatens to engulf us all.Charles described the effect mankind was having on the planet, from causing the thinning of the Arctic sea ice to threatening the world's rainforests, which have reduced by a third since the 1950s.

Delivering the annual Richard Dimbleby lecture in honour of the veteran broadcaster, Charles said it appeared that, if the world continued on its present path, it would lead to a depleted and divided planet.But for all its achievements, our consumerist society comes at an enormous cost to the Earth and we must face up to the fact that the Earth cannot afford to support it,he said.Just as our banking sector is struggling with its debts and paradoxically also facing calls for a return to so-called old-fashioned' traditional thinking so nature's life-support systems are failing to cope with the debts we have built up there too.

CHINA AND KINGS OF THE EAST MARCH TO ISRAEL 2ND WAVE OF WW3

REVELATION 16:12
12 And the sixth angel poured out his vial upon the great river Euphrates; and the water thereof was dried up, that the way of the kings of the east might be prepared.(THIS IS THE ATATURK DAM IN TURKEY,THEY CROSS OVER).

DANIEL 11:44 (2ND WAVE OF WW3)
44 But tidings out of the east(CHINA) and out of the north(RUSSIA, MUSLIMS WHATS LEFT FROM WAVE 1) shall trouble him:(EU DICTATOR IN ISRAEL) therefore he shall go forth with great fury to destroy, and utterly to make away many.( 1/3RD OF EARTHS POPULATION)

REVELATION 9:12-18
12 One woe is past; and, behold, there come two woes more hereafter.
13 And the sixth angel sounded, and I heard a voice from the four horns of the golden altar which is before God,
14 Saying to the sixth angel which had the trumpet, Loose the four angels which are bound in the great river Euphrates.(IRAQ-SYRIA)
15 And the four angels were loosed, which were prepared for an hour, and a day, and a month, and a year, for to slay the third part of men.(1/3 Earths Population die in WW 3 2ND WAVE)
16 And the number of the army of the horsemen were two hundred thousand thousand:(200 MILLION MAN ARMY FROM CHINA AND THE KINGS OF THE EAST) and I heard the number of them.
17 And thus I saw the horses in the vision, and them that sat on them, having breastplates of fire, and of jacinth, and brimstone: and the heads of the horses were as the heads of lions; and out of their mouths issued fire and smoke and brimstone.(NUCLEAR BOMBS)
18 By these three was the third part of men killed, by the fire, and by the smoke, and by the brimstone, which issued out of their mouths.(NUCLEAR BOMBS)

Chinese troops flood streets after riots By WILLIAM FOREMAN, Associated Press Writer JULY 8,09

URUMQI, China – Thousands of Chinese troops flooded into this city Wednesday to separate feuding ethnic groups after three days of communal violence left 156 people dead, and a senior Communist Party official vowed to execute those guilty of murder in the rioting in western China.Long convoys of armored cars and green troop trucks with riot police rumbled through Urumqi, a city of 2.3 million people. Other security forces carrying automatic rifles with bayonets formed cordons to defend Muslim neighborhoods from marauding groups of vigilantes with sticks.Military helicopters buzzed over Xinjiang's regional capital, dropping pamphlets urging people to stay in their homes and stop fighting. Special police from other provinces were called in to patrol the city.The crisis was so severe that President Hu Jintao cut short a trip to Italy, where he was to participate in a Group of Eight summit. It was an embarrassing move for a leader who wants to show that China has a harmonious society as it prepares to celebrate the 60th anniversary of Communist rule.The heightened security came amid the worst spasm of ethnic violence in decades in Xinjiang — a sprawling, oil-rich territory that borders Pakistan, Afghanistan and other Central Asian countries. The region is home to the Uighur ethnic minority, who rioted Sunday and attacked the Han Chinese — the nation's biggest ethnic group — after holding a protest that was ended by police.

Officials have said 156 people were killed as the Turkic-speaking Uighurs ran amok in the city, beating and stabbing the Han Chinese. The Uighurs allege that trigger-happy security forces gunned down many of the protesters, and officials have yet to give an ethnic breakdown of those killed.In Rome, a Germany-based Uighur leader, Erkin Alptekin, told The Associated Press that our countrymen in China reported that 600-800Uighurs were killed in the past few days and 3,000 were arrested.We were told (by fellow Uighurs) that 140 were dead on the spot on Sunday and that their bodies were tossed into trucks and taken away by Chinese security forces, said Alptekin, who briefed the human rights commission in the Italian parliament.When the Uighurs heard the people were fired upon, parents all came out looking for their sons and daughters,he said, adding that security forces started to disperse them by force, then started to beat them, tear gas them and shoot them.

His account could not be independently confirmed.

More than 1,100 people were wounded in the violence. Dr. Yuan Hong of Urumqi People's Hospital said most of the people treated at his facility were clubbed, while others had been cut by knives.Li Zhi, the highest-ranking Communist Party official in Urumqi, told reporters that some of the rioters were university students who were misled and didn't understand what they were doing. They would be treated leniently, he said, as long as they weren't involved in serious acts of violence and vandalism.

But Li added: To those who committed crimes with cruel means, we will execute them.He also repeated allegations that the riot was whipped up by U.S.-exiled Uighur activist Rebiya Kadeer and her overseas supporters. They're afraid to see our economic prosperity. They're afraid to see our ethnic unity and the people living a stable, prosperous life,he said.Kadeer has denied masterminding the violence, and many Uighurs laughed off the notion that they were puppets of groups abroad.Not even a 3-year-old would believe that Rebiya stirred this up. It's ridiculous,said a shopkeeper who only identified himself as Ahmet. Like other Uighurs, he declined to give his full name because he feared the police would detain him.Ahmet was quick to rattle off a long list of grievances commonly mentioned by Uighurs. He accused the Han Chinese of discrimination and alleged that government policies were forcing them to abandon their culture, language and Islamic faith.After all this rioting, I'm still filled with hatred. I'm not afraid of the Han Chinese,Ahmet said.His neighborhood in southern Urumqi was targeted by mobs of Han Chinese who roamed the capital Tuesday seeking revenge. Ahmet's friends had video shot by mobile phones and cameras that showed the stick-wielding Han men beating Uighurs. He pointed to blood stains on a white concrete apartment wall, where he said a Uighur was severely stabbed. A Uighur college student who called herself Parizat added, The men were carrying a Chinese flag. I never thought something like this would happen. We're all Chinese citizens.The Uighurs accused paramilitary police of allowing the Han Chinese to attack their neighbors. But in the video, the troops appeared to be trying to block or restrain the mobs.On Wednesday, the government warned residents against carrying weapons on the street, and most people generally complied. But there were groups of Han Chinese who tried to find soft spots in police cordons and rush into Uighur neighborhoods.One such failed attempt sent a wave of terror and panic through the biggest Uighur neighborhood, Er Dao Qiao.When someone yelled, The Han are coming! children scampered indoors and women ran shrieking through a backstreet market with carts of watermelons, shops selling cold soft drinks and smoky grills with sizzling lamb kebabs.

Within seconds, the men armed themselves with spears stashed behind doors and under market stands. The weapons were long poles with knives and meat cleavers tied to the ends. Piles of rocks were placed across the street for ammunition.One Uighur graduate student who called himself Memet greeted a foreign reporter in English by saying, Welcome to the jungle! I think the Uighur people lately are kind of happy. You can see it in their eyes, a bit of happiness. We've spoken up. People know we exist now, he said.The ethnic hatred in Xinjiang appears to run so deep that many Uighurs won't express sorrow for the Han Chinese who were attacked Sunday.One of them was Dong Yuanyuan, 24, a newlywed who said she was on a bus with her husband getting ready to leave on their honeymoon. She said Uighur attackers dragged them off the bus and beat them until they were unconscious. Her husband was still missing, said the woman, who had abrasions on her face, arms and knees.My aunts have been going to all the hospitals to search for him. He must still be unconscious,she told reporters who joined a government tour at the People's Hospital.Abdul Rehim, a Uighur with his left arm in a sling, said he was walking with his brother when a group of Han Chinese just came out and did this to me.Another victim was Ma Weihong, who said she was walking home from a park with her 10-year-old son when the riot started. The boy suffered minor injuries, but the mother had a broken arm and wrist, missing teeth and head wounds.The stores all closed up and we tried to run for home,she said.That is when they caught us. We couldn't get away.Associated Press writer Frances D'Emilio in Rome contributed to this story.

US officials eye North Korea in cyber attack By LOLITA C. BALDOR, Associated Press Writer JULY 8,09

WASHINGTON – U.S. authorities on Wednesday eyed North Korea as the origin of the widespread cyber attack that overwhelmed government Web sites in the United States and South Korea, although they warned it would be difficult to definitively identify the attackers quickly.The powerful attack that targeted dozens of government and private sites underscored how unevenly prepared the U.S. government is to block such multipronged assaults.While Treasury Department and Federal Trade Commission Web sites were shut down by the software attack, which lasted for days over the holiday weekend, others such as the Pentagon and the White House were able to fend it off with little disruption.The North Korea link, described by three officials, more firmly connected the U.S. attacks to another wave of cyber assaults that hit government agencies Tuesday in South Korea. The officials said that while Internet addresses have been traced to North Korea, that does not necessarily mean the attack involved the Pyongyang government.The officials spoke on condition of anonymity because they were not authorized to speak publicly on the matter.South Korea intelligence officials have identified North Korea as a suspect in those attacks and said that the sophistication of the assault suggested it was carried out at a higher level that just rogue or individual hackers.U.S. officials would not go that far and declined to discuss publicly who may have instigated the intrusion or how it was done.

In an Associated Press interview, Philip Reitinger, deputy under secretary at the Homeland Security Department, said the far-reaching attacks demonstrate the importance of cybersecurity as a critical national security issue.The fact that a series of computers were involved in an attack, Reitinger said, doesn't say anything about the ultimate source of the attack.What it says is that those computers were as much a target of the attack as the eventual Web sites that are targets, said Reitinger, who heads DHS cybersecurity operations.They're just zombies that are being used by some unseen third party to launch attacks against government and nongovernment Web sites.Targets of the most widespread cyber offensive of recent years also included the National Security Agency, Homeland Security Department and State Department, the Nasdaq stock market and The Washington Post, according to an early analysis of the software used in the attacks.The Associated Press obtained the target list from security experts analyzing the attacks. They provided the list on condition of anonymity because they were not authorized to discuss the investigation.

Other experts in cyber assaults said the incident shined a harsh light on the U.S. government's efforts to protect all of its agencies against Web-based attacks.James Lewis, a senior fellow at the Center for Strategic and International Studies, said that the fact that both the White House and Defense Department were attacked but didn't go down points to the need for coordinated government network defenses.It says that they were ready and the other guys weren't ready,he said.We are disorganized. In the event of an attack, some places aren't going to be able to defend themselves.The wave of cyber assaults are known as denial of service attacks. Such attacks against Web sites are not uncommon and are caused when sites are so deluged with Internet traffic that they are effectively taken off-line. Mounting such an attack can be relatively easy and inexpensive, using widely available hacking programs, and they become far more serious if hackers infect and tie thousands of computers together into botnets.Joe Stewart, director of malware research for the counterthreat unit of SecureWorks Inc., said there's no indication yet of a claim of responsibility hidden anywhere in the program behind the attacks. Stewart and other researchers are analyzing the code for clues about the attacker's identity.Stewart noted that the attacks on U.S. government sites appeared to expand after the initial assaults over the holiday weekend failed to generate any publicity. He said the target list contained in the program's code only had five U.S. government sites on it on July 5, but were broadened the next day to include nongovernment sites inside the U.S.

The following day, the South Korean Web sites were added. It seems to me they thought the first round wasn't successful ... they felt they weren't getting enough attention because nobody was talking about their attacks,Stewart said.The cyber assault on the White House site had absolutely no effect on the White House's day-to-day operations, said spokesman Nick Shapiro. He said that preventive measures kept whitehouse.gov stable and available to the general public but that Internet visitors from Asia may have experienced problems.All federal Web sites were back up and running, Shapiro said. A State Department spokesman said the agency's site was up but still experiencing problems. A Web site for the U.S. Secret Service had experienced access problems but did not crash, the agency's spokesman said.The cyber attack did not appear, at least at the outset, to target internal or classified files or systems, but instead aimed at agencies' public sites, creating a nuisance both for officials and the Web consumers who use them.Ben Rushlo, director of Internet technologies at Keynote Systems, said problems with the Transportation Department site began Saturday and continued until Monday, while the FTC site was down Sunday and Monday. Keynote Systems is a mobile and Web site monitoring company based in San Mateo, Calif. The company publishes data detailing outages on Web sites, including 40 government sites it watches.According to Rushlo, the Transportation Web site was 100 percent down for two days, so that no Internet users could get through. The FTC site, meanwhile, started to come back online late Sunday, but even on Tuesday Internet users still were unable to get to the site 70 percent of the time. Dale Meyerrose, former chief information officer for the U.S. intelligence community, said that at least one of the federal agency Web sites got saturated with as many as 1 million hits per second per attack — amounting to 4 billion Internet hits at once. He would not identify the agency, but he said the Web site is generally capable of handling a level of about 25,000 users.Meyerrose, who is now vice president at Harris Corp., said the characteristics of the attack suggest the involvement of between 30,000 to 60,000 computers.

The widespread attack was loud and clumsy,which suggests it was carried out by an unsophisticated organization, said Amit Yoran, chief executive at NetWitness Corp. and the former U.S. government cybersecurity chief. This is not the elegance we would expect from sophisticated adversaries.Officials agreed, however, that the incident brings to the forefront a key 21st century threat.It tells you that cyber attacks are real. It's a very serious problem and one of the more serious facing us, along with terrorism, and China and Russia are the main threats,said Rep. Dutch Ruppersburger, D-Md., who was briefed on the incident.Associated Press writers Lara Jakes and Pamela Hess in Washington; Jordan Robertson in San Jose; Hyung-Jin Kim in Seoul, South Korea; and Andrew Vanacore in New York contributed to this report. On the Net:
Treasury Department: http://www.ustreas.gov Secret Service: http://www.secretservice.gov/ Transportation Department: http://www.dot.gov Federal Trade Commission: http://www.ftc.gov/

G8 sets Iran deadline for nuclear talks By Emmanuel Jarry and Jeff Mason JULY 8,09

L'AQUILA, Italy (Reuters) – Group of Eight major powers will give Iran until September to accept negotiations over its nuclear ambitions or else face tougher sanctions, French President Nicolas Sarkozy said on Wednesday.Upping the stakes in a dispute with Tehran, Sarkozy said the powers would review the situation at a G20 meeting of developed and developing countries in Pittsburgh on September 24 and 25.

If there is no progress by then we will have to take decisions,said Sarkozy after discussions with G8 partners that wrapped up the first day of their annual summit.
Western countries believe Iran is trying to build an atomic bomb. Tehran says it wants to master nuclear technology to generate electricity and has rejected all overtures for talks.The United States and Canada said the world's main industrialized nations were growing increasingly impatient.All G8 nations are united. There is a strong consensus at the table that unless things change soon, there will be further action,said Canadian spokesman Dimitri Soudas.However, Sarkozy made clear Russia was still dragging its feet over the issue and had pushed for more time before considering a fresh round of sanctions.We made an effort to agree not to strengthen sanctions straightaway in order to bring everyone on board. The more reserved amongst us agreed that Pittsburgh was the time for decisions,said Sarkozy.In a separate statement, the G8 said it was committed to finding a diplomatic solution to Iran's nuclear program.We sincerely hope that Iran will seize this opportunity to give diplomacy a chance,the statement said.It deplored the violence in Iran following last month's disputed presidential election and said the arrests of journalists and foreigners were unacceptable.

NUCLEAR PROLIFERATION

Underscoring G8 concern over nuclear proliferation, the world power leaders urged a quick start to talks on a treaty banning production of nuclear bomb-making materials and called on all states to observe a moratorium on nuclear explosions.They confirmed Washington would host a nuclear security summit in March, White House officials said.

This is another important piece of the non-proliferation agenda that (President Barack Obama) has put forward,White House adviser Mark Lippert said.Obama has laid out a vision of a world without nuclear arms and this week agreed with Russia to cut respective stockpiles.Wednesday's G8 statement condemned missile tests in North Korea, saying they were a danger to peace and stability.We urge (North Korea) to refrain from further violations of relevant Security Council resolutions and to engage in dialogue and cooperation,the statement said.The isolated communist state fired seven missiles into the Sea of Japan on July 4 and set off a nuclear test on May 25 in an act of defiance against Washington and its allies.Turning to the Middle East, the G8 reiterated calls for a swift resumption of negotiations between Israel and the Palestinians over the creation of two separate states. We also call for the immediate opening of crossings for the flow of humanitarian aid, commercial goods and persons to and from Gaza, in a manner that respects Israel's security,the statement said.(Writing by Crispian Balmer, editing by Ralph Gowling)