United States presidential election, 2008: ADL launches discussion guide for John F. Kennedy’s ‘A Nation Of Immigrants’

January 31, 2008
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Press Release
New York, January 31, 2008 – In an effort to broaden understanding of immigration policy among high school students, the Anti-Defamation League (ADL) developed a discussion guide to accompany A Nation of Immigrants, President John F. Kennedy’s landmark essay, which has just been reissued with a new introduction by Senator Edward M. Kennedy and foreword by Abraham H. Foxman, ADL National Director. The guide makes available to teachers and educators lessons and ideas that can be implemented in the secondary level classroom, and provides tools to help guide student reading, facilitate discussion and build critical thinking skills.

“This guide is an invaluable teaching tool that will enhance classroom discussion about an important and timely topic,” said Abraham H. Foxman. “It is especially important today, as anti-immigrant, xenophobic sentiments have entered the mainstream discourse“.

“It is critical for our youth to have a thorough understanding of immigration issues and to appreciate the important role immigrants play in our country’s past, present and future.”

When A Nation of Immigrants was first published in 1958, the country was locked in a fierce debate over the direction of our immigration policies. Today, as the issues of immigration and immigrants have taken center stage, the essay is as relevant as when it was written by John Fitzgerald Kennedy 50 years ago at the request of ADL.

That is why the Anti-Defamation League and Harper Perennial are reissuing this landmark essay on the contribution of immigrants to American society. With a new introduction by Senator Edward M. Kennedy, A Nation of Immigrants offers inspiring suggestions for immigration policy and presents a chronology of the main events in the history of immigration in America.

“The reissuing of A Nation of Immigrants on its 50th anniversary is not only commemorative but has great relevance for us today,” Abraham H. Foxman writes in the Foreword to the new edition. “Then, as now, nativism, bigotry and fear of competition from foreign labor were dulling the collective American memory of its own immigrant history and its ideals,” writes Mr. Foxman. “Then, as now, hate groups were beating the drums of anti-foreigner slogans and tried to sway the public and elected officials toward a restrictive immigration policy.”

A Nation of Immigrants was written by Kennedy in 1958 after ADL reached out to the then-junior senator from Massachusetts asking him to highlight the contribution of immigrants at a time when the country was locked in a debate about the direction its policy should take. As the last manuscript President Kennedy ever wrote, the book was first published posthumously.

“The history of this monograph is deeply intertwined with the story of America’s struggle for a fair and compassionate immigration policy,” said Mr. Foxman.

Through ADL’s network of 30 regional offices, there will be a series of local programs and events centered around the release of the new book and the Introduction and Foreword.

Senator Edward M. Kennedy, who has been at the forefront of calls for meaningful immigration, has described his brother’s essay as a seminal document in the struggle for immigration reform.

“Every time the Senate takes up the issue of immigration reform, I re-read my brother’s book for inspiration,” Senator Kennedy said last year in remarks to ADL’s National Leadership Conference in Washington, D.C. “The words he wrote half a century ago ring just as true today.”

In his essay, John F. Kennedy wrote of immigration: “This was the secret of America: a nation of people with the fresh memory of old traditions who dared to explore new frontiers, people eager to build lives for themselves in a spacious society that did not restrict their freedom of choice and action.”


U.S. Federal Reserve writes a new economic script

January 31, 2008

The U.S. Federal Reserve cut its benchmark interest rate by half a percentage point yesterday and signaled it may cut rates further if that is necessary to stave off a recession.

The cuts come on the heels of emergency cuts of three-quarters of a point last week and represent a curtailment of the Fed’s “gradualist” policy, in which it had generally sought to make incremental adjustments of one-quarter point at a time.

The Economist deemed the measure “aggressive activism” and says it represents a new policy script for the Federal Reserve.

Asian markets responded tentatively to the rate cut in mixed trading this morning, uncertain whether lower interest rates would be enough to overcome lingering credit problems.

The Boston Globe reports the rate cuts could translate to “lower credit costs for consumers and businesses, relief for homeowners with adjustable rate mortgages, and a better chance to halt the economy’s deterioration.”

But experts say a slew of problems remain and add that rate cuts aren’t a cure-all. One potential problem is inflation, which remains relatively low in the United States but could spike due to a combination of rate cuts, rising energy prices, and the falling dollar.


Oil and U.S. defense policy

January 31, 2008

A new report from the Stanley Foundation, a nonpartisan research institute, examines the role of energy security in U.S. defense policy.

The report argues “the time has already passed when oil was strategically important enough to require individual industrialized nations to be prepared to intervene militarily in oil-producing regions.”

Read full story.


Islam’s Advance

January 31, 2008

PostGlobal (Washington Post & Newsweek) has a series looking at the role Islam plays in global affairs. The first installment examines the Shiite ritual of Ashura, which marks the event that caused the theological split between Sunni and Shiites.

Read full story.


Reforming the Regulation of Financial Services

January 30, 2008
A Luncheon Address by Steve Bartlett, President and CEO of The Financial Services Roundtable

American Enterprise Institute, Washington, D.C., January 28, 2008

In November 2007, the Financial Services Roundtable published The Blueprint for U.S. Financial Competitiveness, a report that recommended ways to counteract the gradual decline in U.S. financial services competitiveness because of excessive regulation, litigation risk, and lack of regulatory coordination.

Since then, many financial services organizations have provided comments and recommendations to the U.S. Treasury Department, which is developing its own recommendations for reform.

How closely do the comments of financial institutions and financial services organizations line up with the recommendations of the Financial Services Roundtable? Is there a developing consensus for reform, or are there continuing divisions within the financial services industry?

The Financial Services Roundtable has analyzed the submissions to Treasury and compared them to its own Blueprint. At this luncheon speech, Steve Bartlett, the Roundtable’s President, outlined the conclusions of this study.

Read full story.


30. Januar 1933: Deutschlands Weg in die Katastrophe

January 30, 2008

Am 30. Januar 1933 ernennt Reichspräsident Paul von Hindenburg Adolf Hitler zum Reichskanzler. Damit wird Deutschlands Weg in die Katastrophe besiegelt.

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In der Tageszeitung Die Welt findet Sven Felix Kellerhoff sowohl den Begriff der “Machtergreifung” als auch den Begriff der “Machtübernahme” verfehlt: “Will man verstehen, wie der Absturz Deutschlands in die zwölfjährige braune Barbarei begann, wie innerhalb weniger Monate aus dem kriselnden Rechtsstaat eine populäre Diktatur wurde, muss man das erste Halbjahr 1933 als eine Kombination von ‘Machtübertragung’ und ‘Machteroberung’ verstehen.”

Zum Artikel.


UN Secretary-General backs Rwanda bid to try ICTR suspects

January 30, 2008

The Rwandan newspaper New Times reports that UN Secretary-General Ban Ki-moon has thrown his support behind a plan that would allow Rwanda to try genocide suspects from the International Criminal Court for Rwanda, which is based in Arusha, Tanzania.

Read full story.


Winograd Report on the Second Lebanon War

January 30, 2008

The Winograd Commission examining Israel’s 2006 war with Lebanon is due to issue its final report today.

The Israeli newspaper Haaretz reports on some leaks from the report in which generals expressed “complete shock” at Israel’s performance – but says the report’s conclusions about the Israeli government are unknown.

Read full story.


United States presidential election, 2008: Much Ado About Nothing in Florida for Hillary

January 30, 2008

Senator Hillary Clinton won a comfortable majority of votes over her main competitor, Senator Barack Obama, in Florida, but the vote will not count for any delegates.

The Democratic Party boycotted the Florida primary months ago for moving up its primary date. Attention now moves to the February 5 “Super Tuesday” primaries in more than 20 states.

Check out the op-ed by top columnist Dana Milbank in the Washington Post.


Protected: UBS Losses

January 30, 2008

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What is the price of engaging Syria in the Middle East peace process? An Israeli perspective

January 30, 2008

by Avraham Sela

Jerusalem, January 23, 2008, Transatlantic Issues No 25

Introduction

During his recent visit to Cairo, French President Nicolas Sarkozy announced that France would suspend all diplomatic contacts with Syria, due to Syria’s role in the current Lebanese presidential crisis.

This announcement followed months of French efforts to persuade Syrian President, Bashar el Assad, to change course in the region in exchange for Western engagement. It also coincided with the visit to Damascus by two US officials – Republican Senator Arlen Specter and Democratic Congressman, Patrick Kennedy – who reportedly conveyed to Assad a message from Israeli Prime Minister, Ehud Olmert, sounding out Damascus for possible talks. Indeed, Syria’s low-level attendance at the Annapolis conference fueled speculations about the prospect of resurrecting the Syrian-Israeli track.

This coincidence underscores the policy dilemma facing the West vis-à-vis Damascus. Israel shares this dilemma. Its policy and defense communities are divided on whether engaging Damascus, even though for Israel, the basic questions underscoring this dilemma are different: Is a peace agreement with Syria possible? If so, what are the stakes for Israel and the Middle East as a whole?

Arguments for engagement

In Western and Israeli policy circles, many consider Syria as key to Middle East peace. They argue that the right incentive package will drive a wedge between Syria and Iran. Separating Syria from Iran in turn would isolate Iran and weaken its quest for regional hegemony, first and foremost in Lebanon where Western engagement and Syria-Israel peace would encourage Damascus to play a constructive role in disarming Hezbollah and thus enable Israeli-Lebanese detente. Similarly, peace between Israel and Syria would end Syrian patronage and military support for militant Palestinian groups, such as Hamas and the Islamic Jihad, which in turn would facilitate an Israeli-Palestinian settlement and effectively lead to a comprehensive Arab-Israeli peace. For the West engagement means better diplomatic relations, trade and investment, and a face-saving deal on the international tribunal over the assassination of late Lebanese Prime minister, Rafiq Hariri. In Israeli terms, it means the Golan Heights.

Such an agreement is expected to be easily reached and scrupulously implemented. Indeed, in view of the complex and long-deadlocked Israeli-Palestinian negotiations, Syria offers better opportunities because the parameters of the quid pro quo have been ostensibly agreed upon – or at least acknowledged – by the partners. Finally, a Syria-Israel deal, an agreement between state-actors, does not involve the pitfalls of statecraft and nation building that a deal with the Palestinians necessarily requires.

Israeli concessions on the Golan Heights would therefore be a key component of the strategy of engagement with Damascus and would produce benefits both for Israel and the West, with ripple effects beyond the immediate neighborhood.

All the above are of course core Israeli interests. But is it in Israel’s interest – not to mention its Arab neighbors’ – to return the Golan Heights to Syria? There is no doubt that Damascus covets them. The question is whether Israel under current conditions, can obtain the above from Damascus in exchange for the Golan. A look at Syrian track record in foreign policy suggests that these results are far from a foregone conclusion.

Syria’s historical record

Contrary to widespread assumptions, Syria’s main foreign policy interest is not the return of the Golan Heights under its sovereignty but a quest for regional hegemony in the Levant. Thus, restoring Syrian sovereignty over the Golan cannot come at the price of sacrificing that ambition. Even before the 1967 war, Syria’s Ba’ath regime played a leading role entangling Egypt and other Arab states in war with Israel by armed provocations across the Syria-Israel ceasefire lines and support for Palestinian guerrilla groups throughout the 1960′s, which eventually escalated into full-fledged war in 1967. Syria’s loss of the Golan Heights in 1967 was a self-inflicted wound stemming from domestic struggles for power; regardless, the ongoing quest for hegemony in the Levant kept precedence over the Golan Heights.

The combination of radicalism and defeat led Syria to reject Israel’s peace overtures of June 19, 1967 and boycott the three ‘nays’ of Arab summit in Khartoum convened three months later as not militant enough. Unlike Egypt and Jordan, who accepted UNSCR 242 almost immediately after its approval in November 1967, Syria waited until 1971, and even then failed to embrace it unreservedly. After 1973, it tried to impose its militant approach on Egypt and the Arab world as a whole, resorting to all means – including subversion and terror against Jordan, Lebanon and the PLO, and threatening the Gulf monarchies for financial blackmailing.

Syria’s approach to peace negotiations with Israel since the 1991 Madrid Conference shows continuity with its radical pan-Arab calling. Since the early phases of bilateral talks, Damascus insisted on total Israeli withdrawal to the June 4, 1967 lines, including the right for access to the Sea of Galilee, in deliberate contrast to the ‘capitulationist’ nature of all other Arab-Israeli peace treaties – Israel’s agreements with Egypt and Jordan were based on the international boundaries set by European powers in the region. Hence, Syria rejected the Anglo-French 1923 border demarcation (according to which, Israel’s sovereign territory includes a narrow strip of land east of and all along the northern Jordan river and the Sea of Galilee) as ‘imperialist’. It further rejected the 1949 Israel-Syria armistice line, insisting instead for the return to the status quo ante, which would put Syrian sovereignty west of both lines and, most crucially, would give Syria riparian state rights over both water sources.

All Israeli governments since the early 1990s rejected this rigid territorial claim. Moreover, while Syria’s military presence in Lebanon until 2005 lured Israeli governments to seek peace negotiations with Syria and Lebanon as a package deal, this incentive no longer exists and Syria’s bargaining position is weaker. Nonetheless, nothing suggests that under the present circumstances Syria would soften its stance.

Israel’s position is not only grounded in the linguistic ambiguity of UNSCR 242, but also in a hard-nosed realism often overlooked by those advocating Israel’s ‘full withdrawal’ from the Golan in exchange for ‘full peace’. Israel’s acceptance of full withdrawal from Sinai to the 1906 Anglo-Ottoman border was justified by the immense benefit of ending conflict with the militarilyy strongest and largest Arab country. The 1979 treaty practically put an end to any effective Arab war coalition which would threaten Israel’s very existence. 15 years later, the Israel-Jordan peace treaty was similarly based on international boundaries originally set by Great Britain in 1922. Yet, it also represented a decade-long record of mutual security interests and tacit cooperation, as well as recognition of the changes in the status of the West Bank (part of Jordan, until 1967) shaped by the first Palestinian uprising and the Oslo accords. Thus, while excluding the West Bank, the agreement included practical arrangements concerning land and water which, among others, enabled Israeli hamlets to remain in place and cultivate officially recognized Jordanian land along the Arava Valley. It is this pragmatic point of departure and changing strategic realities in the region that should guide Israeli policies concerning future negotiations with Syria. Hence, a peace treaty with Syria, especially given the strategic importance of the Golan for Israel, such strategic realities, offers much less than its two precedents with Egypt and Jordan did.

Syria’s modus operandi

Representing a small ethnic minority, the ‘Alawi ruling elite in Syria has constantly suffered from poor political legitimacy and a strong Sunni opposition, which underscores the regime’s very narrow margins of tolerance for dissent and calls for political liberalization. The most glaring example of this has been the bloody repression of the Muslim Brotherhood’s uprising in Hama, in February 1982, when the regime sent its armored divisions to massacre an estimated 20,000 civilians. Indeed, because of its shaky legitimacy as a heterodox Shi’a sect in a Sunni country, Syria’s Alawi rulers have chosen two instruments to ensure their survival, which bode ill for advocates of engagement: one is the embrace of radical causes as a source of legitimacy; the second is a strategic alliance with revolutionary Shi’a Iran. Thanks to these two pillars of Syrian policy, Syria’s regime managed to survive in the last two decades despite its loss of Soviet patronage, crumbling economy and growing isolation in the Arab world. Its closed nature and mafia-like methods of affecting authority and employing power have only made it more impervious to foreign investment and interaction with the Western world.

Syria’s regional policies under the Assad dynasty constantly aspired for hegemony in the Levant despite the country’s limited strategic capabilities, a policy which accounted for constant conflicts with Syria’s neighbors and drained the country of already scarce resources. To bridge the gap between its own aspirations for grandeur and the reality of its weakness, since the 1960s the Syrian regime strove to maximize its regional weight by employing non-state proxies against its neighbors – Palestinian guerrilla and terror groups, both secular and Islamists, Shi’a militias, Turkish and Kurdish rebels, and most recently, Jihadi volunteers en route to Iraq. Syria’s typical strategy of coping with Israel – and occasionally with Turkey, Jordan, Iraq, and the PLO during periods of political tension – has thus been waging low-intensity wars by proxy, harboring terrorism and encouraging opposition groups to subvert Syria’s neighbors as a substitute for diplomacy.

Nothing has epitomized Syria’s gang-like strategies more graphically than its conduct in Lebanon, especially since the Hariri assassination in February 2005 and the subsequent ‘Cedar Revolution’ which, thanks also to international pressure, led to Syria’s full military withdrawal from Lebanon two months later. The withdrawal did by no means indicate that Syria was willing to loosen its grip over Lebanon. Despite international pressures and Arab critique, Lebanon was hit by a wave of assassinations of Lebanese politicians and journalists, all of which carry the imprint of Syria’s hands.

This murderous campaign was reinforced by Hezbollah’s massive street demonstrations and violence in late 2006 in an attempt – still ongoing – to attain veto power over all government decisions, including the authorization of the International Tribunal to try and indict Hariri’s murderers. Syria’s continued interference in Lebanon’s political deadlock is the latest in Syria’s resolve to maintain its control over Lebanon in tandem with Iran to pursue their joint agendas locally and vis-à-vis Israel.

Conclusion

Though the Golan Heights remains ostensibly an open wound for Syria, its leaders have done considerably little since the mid-1970s to convince Israel and the international community that retrieving this territory is indeed a national priority. This is especially the case when viewed against the huge amount of energies Syria invested in other regional issues, especially in Lebanon, since its 1976 military intervention. Moreover, Syria provided no indication of its willingness to depart from its embedded strategy of harboring terrorism in close alliance with the fanatic and revolutionary regime of Iran. In view of the immense economic and military benefits Syria reaps from its alliance with Iran and influence in Lebanon, it is not even remotely likely that Syria would change once the Golan Heights is retrieved.

Another serious impediment in this context is Syria’s rigid pan-Arab ideology and self-image as the spearhead of the struggle against Israel. These images, deeply rooted in the military and ruling party, are keystones of the domestic legitimacy and survival of Assad’s autocratic regime, which also shape a very different vision of future relations with Israel even in comparison to the ‘cold’ model of peace maintained by Egypt and Jordan. Syria envisions peace with Israel as strictly a new strategy in the historical combat against the Jewish state. “The establishment of peace means turning this conflict into political, ideological and economic conflict,” as stated by Syrian Foreign Minister Farouq al-Shara’ in a closed session of the Arab Association of Writers in February 2000.

Syria’s domestic security concerns and regional strategic priorities in the past forty years bears little, or no indication that a ‘land for peace’ deal with Israel would result in a significant change in Syria’s regional policies, particularly concerning Lebanon and Iran. For Israel’s policymakers, then, the cost-benefit balance of peace with Syria at the cost of full withdrawal from the Golan Heights holds no promise or attraction now more than anytime in the past. This is further stressed by the steadily decisive opposition of the Israeli public to exchange the Golan Heights for the poor benefits Syria can offer Israel in terms of bilateral or regional security or the advancement of a peaceful settlement with the Palestinians.

Finally, while peace negotiations with Syria are a desirable venture, those advocating a peace settlement with Syria on the basis of (all the) ‘land for peace,’ similarly to the peace treaty with Egypt, are in fact suggesting to reward this bully regime for its violence. If international law is supposed to instill norms of peaceful behavior among states, the international community should not overlook Syria’s tradition of conducting deadly games in the region, especially in terms of employing non-state actors for subverting, sabotaging and terrorizing its neighboring rivals.

About the author: Senior Lecturer in the Department of International Relations at the Hebrew University of Jerusalem, Avraham Sela is the co-author (with Shaul Mishal) of The Palestinian Hamas: Vision, Violence and Coexistence.

Reprinted with kindly permission of The Transatlantic Institute.


Bad News Makes Headlines: Security challenges posed by Pakistan

January 29, 2008

British Prime Minister Gordon Brown announced he would hold some aid funds intended for Pakistan until after February 18, 2008 parliamentary elections, to try to ensure that the elections are fair.

A paper from the Institute for Public Policy Research, a British think tank, examines security challenges in Pakistan and what balance the European community should strike in its efforts to help secure the country.

Read full story.


European leaders discuss Markets

January 29, 2008

The leaders of Germany, France, and UK met in London to discuss joint efforts at financial regulation in light of recent market turmoil.

The Financial Times reports, however, that the meetings could wind up “long on rhetoric and short on concrete outcomes.”

Read full story.


George W. Bush’s State of the Union Address 2008

January 29, 2008

President George W. Bush delivers his State of the Union Address Monday, Jan. 28, 2008, at the U.S. Capitol. White House photo by David Bohrer.

President George W. Bush delivers his State of the Union Address Monday, Jan. 28, 2008, at the U.S. Capitol. White House photo by David Bohrer.

In his final State of the Union address, President George W. Bush pressed for unity on the Iraq War and his economic stimulus plan.

George W. Bush said his final year in office will be focused on sustaining military progress in Iraq and signaled he will maintain a sizeable U.S. military presence there.

On the economic front, George W. Bush urged Congress to pass his economic stimulus plan without adding new spending, saying the package could play a critical role making the United States more competitive internationally. Bush also reiterated his position on Iran with a warning: “America will confront those who threaten our troops, we will stand by our allies, and we will defend our vital interests in the Persian Gulf.”

The state-run Iranian PressTV reported that Bush’s “rhetoric echoes anti-Iran hysteria” in the United States. China’s Xinhua news network focused on the economic aspects of the speech. Al-Jazeera examines Bush’s defense of his Iraq strategy, while the Israeli paper Haaretz reports on his appeal for the formation of a democratic Palestinian state.

Senator Hillary Clinton and Senator Barack Obama both criticized President George W. Bush for what they say is an attempt to ensure that the next president will not be able to withdraw from Iraq. In an interview with MSNBC after the address, Obama said Bush has been “foreshadowing” endless war. Obama said he “would have liked to see that we had a plan to exit from Iraq.”

In a statement, Hillary Clinton said Bush “isn’t satisfied with failure after failure in Iraq; he wants to bind the next President to his failed strategy by unilaterally negotiating with the Iraqi government about the future of the U.S.-Iraq security relationship, including the possibility of permanent U.S. bases in Iraq.”

All three of the Democratic candidates also criticized Bush’s economic stimulus plan, which, John Edwards said, “leaves out tens of millions of Americans who need help the most.”

Republican candidates generally praised Bush’s speech. Mitt Romney said on NBC that Bush “recognizes that Washington has been unable to deal” with problems including al-Qaeda and immigration. “This was a President saying, ‘You know what? Washington ought to get the job done.’”

Senator John McCain said Bush was “correct in his assessment” of the threat of radical Islamic extremism.

In a press release, Mike Huckabee said Bush’s speech reaffirms that “difficult as it has been, we are making progress in Iraq and Afghanistan,” and called on Americans to “take pride in the accomplishments of our warriors, under the superb leadership of General David Petraeus.”


5 Myths about that depressing R(ecession)-Word

January 28, 2008

Kevin A. Hassett, Director of Economic Policy Studies at the American Enterprise Institute, argues that people believe that a recession is just around the corner because far too many myths about recessions have made their way into popular culture.

by Kevin A. Hassett

The Washington Post, January 20, 2008

Early economic studies seemed to confirm the view that the economy has become less volatile over time, with some estimates implying that the severity of recessions declined by 75 percent roughly around the end of World War II.

When Scottish historian Thomas Carlyle branded economics the “dismal science” in 1849, he gave it a name that would stick. (Some theorize that he picked on economists since, like most Scots back then, Carlyle had never visited a dentist.) Fortunately for economists, 1849 was a pretty good year. If Carlyle had seen how economists behave during recessions, he probably would have dubbed their subject something far worse.

Economists have the same occupational hazard as baseball managers and football coaches: Every person on the street knows their job better than they do.

And if you listened to the economic stimulus package talk last week from the White House and Capitol Hill, not to mention Federal Reserve Board Chairman Ben Bernanke, you could be forgiven for thinking that the recession is just around the corner. But the main result of all this chatter is that far too many myths about recessions have made their way into popular culture.

1. We’re already in a recession.

The truth is, nobody knows. The responsibility for declaring the stages of the business cycle is informally held by that most dreaded of concepts – a committee of economists. The Business Cycle Dating Committee of the National Bureau of Economic Research (NBER) uses a number of economic indicators, including personal income, unemployment, industrial production and sales and manufacturing volume, to determine the health of the economy. It’s not true that they declare a recession if economic growth is negative for two quarters in a row. If it were that simple, we wouldn’t need a committee.

If you want to know about the state of the economy in real time, you can’t rely on the NBER. If the NBER did the D.C. weather forecast, here’s how it would work. The bureau would gather precipitation data from every neighborhood, then interview residents to make sure that the data are accurate. After much deliberation, it would tell us whether it had rained last month. Same with recessions: The NBER’s pronouncements historically come long after recessions have begun, a whopping seven months on average. By the time the bureau announced the recession of 1991, it had already ended.

It’s impossible to tell whether the NBER will make a pronouncement anytime soon. Right now, we only have enough data to assess the economy accurately through last November. The best available real-time indicator of recession, a model developed by economist Marcelle Chauvet of the University of California at Riverside that has correctly called every postwar recession without ever giving a false signal, clearly indicates that the economy was not in recession in November. Things certainly have deteriorated since then, but it is an open question whether they have deteriorated enough. A recession may have started. Or it may not have.

2. The stock market tanks during recessions.

Not so. With the economy heading south during recessions, the conventional wisdom is that stock prices drop as well. Stocks usually drop before a recession, something that may be happening now. However, the market tends to look ahead and starts to respond favorably to the expected end of a recession long before it occurs. Influential economist Donald Luskin of Trend Macrolytics recently ran the numbers and found that stocks have produced an average return of 12.1 percent in post-World War II recessions. This is only slightly below the average return outside recessions.

3. Recessions used to be a lot worse.

Lunchroom economic conversations are inevitably graced with at least one statement from an old-timer along the lines of: “In my day, we walked 10 miles in the snow just to get to the recession.” In fact, the nature of recessions hasn’t changed much over the years.

Early economic studies seemed to confirm the view that the economy has become less volatile over time, with some estimates implying that the severity of recessions declined by 75 percent roughly around the end of World War II. However, a prominent study by University of California at Berkeley economist Christina D. Romer demonstrated that the problem really was that prewar data collectors had not advanced to the exalted level of data-geekdom of today’s professionals. When important changes in data-collection methods and inconsistencies in the historical definition of the business cycle were accounted for, it emerged that recessions before World War I and since World War II have been just about equally severe.

While the past three recessions may have seen slightly smaller drops in economic growth on average, there is no guarantee that the next one – when it arrives – will be mild. The superstitious might even say that we are due for a whopper.

Recessions probably have become less frequent. In terms of duration, the average recession since World War II has lasted about a year. The past three recessions – in 1981-82, 1990-91 and 2001 – lasted about a year as well.

One factor that has clearly not helped is government discretionary fiscal policy, like the economic stimulus packages currently being considered on Capitol Hill. You might think that the brilliant postwar discoveries of economists would have provided tax medicine to stop recessions in their tracks. In an exhaustive study, however, Romer and her husband, David, found that fiscal measures such as temporary tax rebates and government spending increases have failed to push the economy out of recession because they have been too small or too late, or both.

4. Recessions are bad for your health.

David Mamet once told an interviewer that he got the inspiration for his 1984 Pulitzer Prize-winning play “Glengarry Glen Ross” from an account of a salesman’s fatal heart attack, caused by a recession “so vicious the competition was for jobs and sales, especially among older men.” However, for most Americans, the story is quite the opposite. Americans get healthier as the economy gets worse. Unemployment tends to increase during recessions, but economist Christopher J. Ruhm of the University of North Carolina at Greensboro has found that a temporary one percentage point increase in the unemployment rate leads to a 0.5 to 0.6 percent reduction in the mortality rate, or about 14,000 fewer deaths per year.

Why the health benefits? With more free time and less money on their hands, people tend to consume less tobacco, exercise more, prepare healthier meals and lose weight. In addition, they are much less likely to have car and other accidents, and to catch communicable and sometimes fatal diseases such as influenza. Among the top 10 causes of death in the United States, only suicide rates show a substantial unemployment-driven increase. Even deaths caused by heart disease fall substantially.

5. There is a regular business cycle.

In a pair of articles in the Quarterly Journal of Economics published in 1920 and 1921, Columbia University economist H.L. Moore hypothesized that the primary cause of economic cycles was the regular eight-year cycle of the modes of the planet Venus. This type of thinking, along with 19th-century English economist William Stanley Jevons‘s theory that the 10-year sunspot cycle causes economic fluctuations, perhaps accounts for the widespread notion that there is a regular business cycle.

Don’t count on it. The term “business cycle” is imprecise. Economic fluctuations affect everyone, not just businesses, and they are, unlike astral cycles, anything but regular. In the nine recessions since 1949, the shortest time between two recessions has been three quarters (the recessions of 1980 and 1981-82), while the longest has been just short of 10 years (the recessions of 1991 and 2001). When the next recession ends, a good guess will be that the expansion that follows will be somewhere between one year and 10 years in length.

A better analogy might be to think of our economic future as being a road trip in a 1971 Ford Pinto. Our car might burst into flames in the next instant, there might be a truck in our lane around the bend, or we just might make it all the way to California.

With kindly permission of The American Enterprise Institute.


Determinants of Competitiveness of the Indian Auto Industry

January 28, 2008

A new paper from the Indian Council for Research on International Economic Relations, an independent think tank, examines the competitiveness of the Indian auto industry following the much-publicized release of an Indian automobile that will retail for $2,500.

Read full story.


Nicolas Sarkozy’s New Western Idea

January 28, 2008

Newsweek International examines the legacy French President Nicolas Sarkozy seems to want to create: one focused on strong trans-Atlantic relations, unabashedly Christian, but equally defined by warm relations with Muslim countries.

Read full story.


Setback for Angela Merkel’s Party

January 28, 2008

The party of Germany’s Chancellor Angela Merkel suffered heavy losses in regional elections in the German state of Hesse. German broadcaster Deutsche Welle says the party has suffered from a polarizing strategy.

Read full story.


The new role of oil wealth in the world economy

January 28, 2008

The McKinsey Quarterly examines the new role oil wealth plays in the global economy, noting its impact on interest rates and the pricing of global assets.

Read full story.


Hessen-Wahl 2008: Provinzfürst stürzt ab, Bürgerschreck XY triumphiert

January 27, 2008

Roland Koch, als Kanzlerkandidat nun definitiv erledigt, wird wohl bei der Bundestagswahl 2009 den Weg für seinen innerparteilichen Kontrahenten und  konsensfähigeren Hoffnungsträger der Union Christian Wulff frei machen müssen. Von Niedersachsen lernen, heisst für die CDU siegen lernen.

Die veritable Sensation  der Landtagswahlen in Hessen und Niedersachsen bleibt jedoch das schlechte Abschneiden der Grünen, das das Ende dieser Partei auf Bundesebene bedeutet, da der politische Raum der Grünen schon längst von der FDP und der Linkspartei erorbert worden ist und die Themen der Grünen für die Wähler irrelevant geworden sind, auf Grund der Tatsache, dass Umweltschutz überall angekommen ist. FDP und Linkspartei, die als Protestparteien enttäuschte Konservative, geprellte Arbeitnehmer (“die mehr Netto vom Brutto”-Kampagne der FDP) und Globalisierungsverlierer politisch resozialisieren, werden sicherlich in Zukunft als Koalitionsmacher oder Spaßverderber im bundesrepublikanischen Schlachtfeld für Spannung sorgen.

Dazu ein brillanter Kommentar von Dr. Heribert Prantl, Ressortleiter Innenpolitik der Süddeutschen Zeitung:

“Die Öffentlichkeit schaut dem Machiavellisten, solange er Erfolg hat, zwar nicht mit Bewunderung zu, aber doch mit Respekt vor seiner Unverfrorenheit. Wenn aber der Zweck auch mit unanständigen Mitteln nicht erreicht wird, wird der Machiavellist zur tragischen Figur. Das widerfährt nun dem Ministerpräsidenten Koch, zumal sein innerparteilicher Konkurrent Christian Wulff mit einem Kontrastprogramm die Wahl in Niedersachsen ordentlich gewonnen hat. Wulff hat den Polarisierungs-Wahlkampf à la Koch vermieden. Er hat die Wählerschaft, die Koch mit Brachialrhetorik teilte, mit Konsensrhetorik zusammengeführt. [...] Die bundespolitischen Auswirkungen des Wahltages können kaum überschätzt werden. Der SPD ergeht es so wie einst dem biblischen Lazarus: Sie erlebt ihre Wiederauferstehung – per Linksruck. Für die CDU gehen die schönen Zeiten zu Ende. [...] Die SPD rückt nach links. Die Linkspartei beginnt sich im Westen zu etablieren. Dieser Wahltag verändert das Mobile der deutschen Politik.”

Zum Leitartikel.


Sonderzüge in den Tod – Deportationen mit der Deutschen Reichsbahn

January 27, 2008
Die Brüder Rosenthal: Gert (l.) wurde ermordet, Bruder Hans – der spätere Showmaster – überlebte. (Foto: © F.A.Z.-Matthias Lüdecke)

Die Brüder Rosenthal: Gert (l.) wurde ermordet, Bruder Hans – der spätere Showmaster – überlebte. (Foto: © F.A.Z.-Matthias Lüdecke)

Ein ganzes Jahr ist um die Reichsbahn-Austellung gestritten worden. Nun wurde am 23. Januar 2008 am Bahnhof Potsdamer Platz in Berlin die Wanderausstellung «Sonderzüge in den Tod – Deportationen mit der Deutschen Reichsbahn» eröffnet. Die Exposition ist bis zum 11. Februar 2008 in Berlin zu sehen. Anschließend soll sie in weiteren Orten in Deutschland gezeigt werden.

Die Ausstellung entstand in enger Zusammenarbeit mit dem Centrum Judaicum, dem Deutschen Technikmuseum Berlin und der deutsch-französischen Journalistin und Nazi-Jägerin Beate Klarsfeld (1984 zum Ritter der Ehrenlegion vom Frankreichs Staatspräsidenten François Mitterrand geschlagen worden, weil auf deren Initiative der NS-Vebrecher Klaus Barbie in Bolivien gefasst und später in Frankreich verurteilt wurde), wie die Frankfurter Allgemeine Zeitung berichtet.

“Beate Klarsfeld hat die aktuelle deutsche Debatte ausgelöst, indem sie Mehdorn öffentlich der Geschichtsvergessenheit bezichtigte. In Berlin zeigt die Deutsche Bahn nun, dass sie ihre Lektion gelernt hat. Frau Klarsfeld sagte bei der Eröffnung, sie hoffe, dass sich die Reisenden, die auf dem Weg zu ihren Zügen durch die Ausstellung kommen, fragen ‘Warum sind hier diese Kinder?’ – und innehalten. Um eine Liste mit den Namen von achthundert aus Frankreich deportierten österreichischen und deutschen Kindern herum hat sie Einzelschicksale geordnet, die zu Familiengeschichten werden und mit grausiger Sicherheit immer dorthin führen, wo die Bahngleise endeten: nach Auschwitz.”

Zum Artikel.

Link: Die Logistik des Holocausts, Artikel in der Neuen Zürcher Zeitung


Jan Philipp Reemtsma zu Gewalt

January 27, 2008
Vortrag von Prof. Dr. Jan Philipp Reemtsma, Philologe, Vorstand des Hamburger Instituts für Sozialforschung, Johannes Gutenberg-Stiftungsprofessur 2008 der Universität Mainz

reemtsma.jpg

Gewalt und Vertrauen. Grundzüge einer Theorie der Gewalt in der Moderne

Hamburger Institut für Sozialforschung, 24. Januar 2008, 20 Uhr

“Es gibt eine Frage, die Sie alle kennen, und die Sie vielleicht auch von mir traktiert sehen möchten. Es ist die Frage, wie es denn möglich sei, dass “ganz normale” Männer – oder gar: “ganz normale Familienväter” – unvorstellbare Grausamkeiten begehen, sich an Massakern beteiligen, nicht nur andere Männer, sondern auch Frauen und Kinder töten, Menschen demütigen, foltern, im Namen der Wissenschaft zu Tode quälen. Diese Frage treibt uns um. Dennoch ist es eine alberne Frage.”

Mehr.


Ask a Rabbi: What is Unique About Jewish Business Ethics?

January 26, 2008

by Rabbi Dr. Asher Meir

Judaism recognizes that self-interest plays a major (but not sole) role in ensuring ethical standards. The principles of “Do not do unto others as you would not like done to yourself” and “Love your neighbour as yourself” suggest the positive and negative aspects of this principle.

1. Unlike other religions, Judaism has never viewed poverty as a virtue. Wealth, however, has always been seen as a challenge. Judaism places many social and charitable responsibilities on the financially stronger elements within society and emphasizes the need to avoid exploitation of the weak.

2. Moral business behaviour encourages long lasting and successful business relationships and loyal customers. Judaism adds though that the imperative of integrity demands honesty even when it is contrary to business advantage.

3. Judaism recognizes that ethics can only exist where there is an effective and respected legal infrastructure. Ethics however go beyond law and can be defined as – “Obedience to the unenforceable.”

4. Greed, while being an important motivation for economic activity, is also a source for immoral behaviour. Added to this, the uncertainty that is part of life urges us to believe that “More is better than less”, which further stimulates unethical behaviour. Judaism presents an “economics of enough” that restrains both of these factors.

For a more comprehensive look at Jewish business ethics, check out Jewish Ethicist: Everyday Ethics For Business And Life.


World Jewish Congress presídent Ronald S. Lauder on Holocaust commemoration: Draw lessons for today, protect Israel

January 25, 2008

In an opinion piece for Germany’s leading newspaper ‘Süddeutsche Zeitung’ on the occasion of International Holocaust Remembrance Day, the president of the World Jewish Congress, Ronald S. Lauder, argues that Holocaust remembrance should be “more than just a regular gathering of dignitaries listening to solemn speeches by important people.”

He noted that, although solemn acts were important in their symbolism, the remembrance of the Shoah also had practical consequences for today’s world.

“Is it acceptable to organize big Shoah commemorations on one day, and to provide the Islamist regime in Tehran with technology to develop weapons or even nuclear capabilities the next? Can we put our head in the sand and ignore the warning signs, like so many Europeans now do after the US intelligence report published in December?, ” Lauder asks.

He also criticizes the attitude of some Europeans: “The rejection of the ‘Zionist state’ is not just found among Islamists and those who want ‘to wipe Israel off the map.’ It can also be detected in Europe where self-proclaimed ‘principled people’ often apply much stricter standards when judging Israeli actions than in comparable cases. This is, in itself, a form of discrimination and leads to a ‘demonization’ of Israel.”

The WJC president concludes that protecting the State of Israel was part of honouring the memory of the victims of the Holocaust.

Full text:

Sunday’s speeches, Monday’s actions

Süddeutsche Zeitung, Germany
25 January 2008

by Ronald S. Lauder, president of the World Jewish Congress (WJC)

Holocaust memorial day on 27 January is important – the Iran crisis will show if European politicians draw their lessons

In June 2006, the Holocaust survivor Noach Flug was awarded the Federal Cross of Merit by Germany’s President Horst Köhler, for promoting mutual understanding between Jews and non-Jews and between Israel and Germany. Seventy years earlier those in power in Germany then wanted to murder Flug for being Jewish. He was the only of over a hundred family members who survived Auschwitz.

In November 2005, the United Nations designed 27 January as annual International Holocaust Remembrance Day. It was on that day in 1945 that Soviet troops liberated Auschwitz-Birkenau. In its unanimously adopted resolution, the UN General Assembly also pledged to “develop educational programmes that will inculcate future generations with the lessons of the Holocaust in order to help to prevent future acts of genocide.” The UN has since invested considerable resources to educate young people. More and more countries have now adopted January 27 as their national Holocaust memorial day.

The UN resolution was a milestone, because we owe it to the victims that their suffering is not forgotten. We owe it to them not to point fingers at others, but to remind ourselves constantly what terrible crimes human beings are capable of committing. We also owe it to survivors like Noach Flug to make sure that commemorations are more than just a regular gathering of dignitaries listening to solemn speeches by important people.

Don’t get me wrong: of course we need official ceremonies and declarations. They are important in their symbolism and remind us that the past has a bearing on the present. Yet for me, the most powerful form of remembrance has always been when a survivor has told me his or her story. Even though such stories may have been repeated a thousand times, they always remain as shocking and vivid as the first time.

Official acts of commemoration are one part of a culture of remembrance. The other part is trying to answer the question: What lessons can we draw from this for ourselves? How does this influence us as political leaders and as citizens?

The most obvious consequence to me is this: we have to achieve a small measure of justice for those few remaining Shoah survivors who are still among us. It is true that much has been achieved in this field over the past decades. We must not forget that there are many survivors – notably in eastern Europe, but also in Israel – who are old and frail, who cannot afford expensive medicines or the intensive care they need therefore cannot live in dignity. Although many agreements have been concluded and governments have looked for “legal closure”, I believe there is still a moral obligation on responsible politicians to listen carefully when people like Noach Flug speak out on behalf of survivors.

After World War II, many Holocaust survivors left Europe for the Holy Land. Noach Flug was one of them. The fact that the State of Israel came into existence was due to a UN resolution that partitioned Palestine into a Jewish and an Arab state. The Arabs rejected this and waged war on the fledgling Jewish state. They failed repeatedly. Despite continuing attacks Jews in Israel and the Diaspora will thus be able to celebrate 60 years of Israel’s existence next May. Even though the history of Zionism and Jewish settlement in the Holy Land is much older, Israel was to some extent built on the ashes of the Holocaust. Like many other survivors, Noach Flug helped to build and defend Israel. He became president of the International Auschwitz Committee and the Center of Organizations of Holocaust Survivors in Israel.

Yet even six decades after its proclamation, Israel is the only country in the world whose existence is not accepted by a large number of governments and people in the world. The rejection of the “Zionist state” is not just found among Islamists and those who want “to wipe Israel off the map.” It can also be detected in Europe where self-proclaimed gutmenschen often apply much stricter standards when judging Israeli actions than in comparable cases. This is, in itself, a form of discrimination and leads to a ‘demonization’ of Israel.

It is strange: Israel is the only country in the Middle East that has had a stable plural democracy in the last 60 years. A sizeable minority of one million Arabs holds Israeli citizenship and is represented in the Knesset, the Israeli parliament. Most of them would probably not want to swap their passport for any other document. Yet some less well-meaning people say that Israel should not be a Jewish state. To me, this is just another way of questioning Israel’s right to exist.

When commemorating the Holocaust, we Jews always have Israel’s well-being in the back of our mind. It should be in the back of everyone’s mind. But then the question is: Is it acceptable to organize big Shoah commemorations on one day, and to provide the Islamist regime in Tehran with technology to develop weapons or even nuclear capabilities the next? Can we to put our head in the sand and ignore the warning signs, like so many Europeans now do after the US intelligence report published in December?

Seventy years ago, there was a British Prime Minister who proudly talked of “peace in our time” when returning from a conference in Munich with Hitler and Mussolini. He thought the “appeasement” of dictators was possible. Less than a year later, Europe was in flames and the Nazis were sending millions to the death camps. We must not let history repeat itself. We owe it to Noach Flug and all the others who perished in the Shoah. Therefore, 27 January should always be a date to reflect precisely about that.

The original German language version can be seen here.


Event: The 2008 State of the Union, Addressing Key Questions of Foreign and Economic Policy

January 25, 2008
Washington, DC -  On Monday, January 28, 2008, The American Enterprise Institute (AEI) will host a public event to mark the president’s State of the Union address. As President Bush enters his final year in office, many have begun to debate his administration’s legacy. In his eighth and final State of the Union address, issues of foreign and fiscal policy are sure to be central to the president’s address to Congress.

It has been more than six years since the terror attacks on New York and Washington. Has the United States made progress in the war on terror? Certainly, the last year has brought good news in Iraq as a result of the surge. But now Afghanistan looks to be in serious trouble, and U.S. casualties are rising. And what of the “Freedom Agenda”? Is it, as so many suggest, dead? Democracy is in retreat in Russia and not on the horizon for China. Will this president’s legacy be status quo ante in much of the world?

The nexus of an election year and a struggling economy will surely bring economic policy to the forefront of the policy agenda. The economic panel will touch on a number of pressing issues, including the forthcoming economic stimulus package, instability in the housing market, rising oil prices, and the future of American trade policy. How will the president’s agenda be shaped by the 2008 elections? Can Congress reach effective solutions to the nation’s economic challenges?

These and other questions will be the subject of two panel discussions led by AEI’s vice president for foreign and defense policy studies, Danielle Pletka, and by AEI’s director of economic policy studies, Kevin A. Hassett.

8:15 a.m. Registration

8:30 Panel I. Foreign Policy

Panelists: Leon Aron, AEI
Dan Blumenthal, AEI
Thomas Donnelly, AEI
Michael Rubin, AEI

Moderator: Danielle Pletka, AEI

9:45 Panel II. Economic Policy

Panelists: Kevin A. Hassett, AEI
Lawrence B. Lindsey, AEI
Vincent R. Reinhart, AEI
Peter J. Wallison, AEI

Moderator: Karlyn Bowman, AEI

11:00 Adjournment

Media Contact: Veronique Rodman
American Enterprise Institute (AEI)
1150 Seventeenth Street, N.W.
Washington, DC 20036
Phone: 202-862-4870
E-mail: VRodman@aei.org


Israel-EU Handelsbeziehungen 2007

January 25, 2008
Auch im Jahr 2007 ist die Europäische Union Israels wichtigster Handelspartner geblieben. Aktuellen Angaben des israelischen Zentralamts für Statistik zufolge fallen 35 Prozent sowohl des Exports als auch des Imports auf EU-Staaten. Das Handelsdefizit mit der EU liegt bei 4.2 Milliarden Dollar, was einen Anstieg von 3.5 Prozent gegenüber dem Vorjahr bedeutet.

Der Export aus Israel in die folgenden europäischen Staaten belief sich auf mehr als eine Milliarde Dollar: Deutschland (1.9), Großbritannien (1.6), Holland (1.6), Frankreich (1.2), Italien (1.2), Türkei (1.2), Spanien (1.1).

Der Import nach Israel aus den folgenden europäischen Staaten belief sich auf mehr als eine Milliarde Dollar: Deutschland (3.5), Italien (2.3), Holland (2.1), Schweiz (2.1), Großbritannien (1.8), Türkei (1.6), Frankreich (1.5), Belgien (1.3).

(Diese Zahlen beinhalten nicht den Handel mit Diamanten)

Die Summe des israelischen Exports (einschließlich Diamanten) ist im Jahr 2007 um 7.3 Milliarden Dollar gewachsen; 3 Milliarden davon (41%) fallen auf den Export in EU-Staaten. Insgesamt ist der Export aus Israel nach Europa zurückgegangen, während der Export nach Israel aus Europa gewachsen ist.

Steigende Exportzahlen sind für Kroatien, Slowenien, Luxemburg, Malta, die Slowakei, Österreich und Schweden zu verzeichnen. Steigende Importzahlen sind für Lettland, Malta, Slowenien, Zypern, Luxemburg, Litauen, Portugal, Österreich und Estland zu verzeichnen.

Quelle: Außenministerium des Staates Israel, 21.01.2008


European Union approves Kosovo stability mission

January 25, 2008

The European Union announced it is ready to send a “stability mission” to Kosovo to replace the United Nations mission currently established there should the Serbian province declare itself independent.

Read full story.


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