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Last month, the Obama administration bashfully announced plans to deal with the current situation in Egypt. The US temporarily suspended the provision of M-1/A-1 tank kits, a dozen F-16s, AH-64 Apache helicopters, and an unspecified number of Harpoon missiles. Also, it is not proceeding with the planned transfer of $260 million in cash to the Egyptian government. The suspension will last until it sees Egypt moving toward democracy.After the announcement, Egyptian Foreign Ministry spokesman Badr Abdelatty said, "The decision was wrong. Egypt will not surrender to American pressure and is continuing its path towards democracy as set by the road map." Afterward, Egypt had a week-long holiday. After three months of chaos, Egyptians are very much in need of some time to relax and forget about political strife. The partial suspension of US aid did not create many waves in the country.There are at least two reasons behind the Egyptian government's mild attitude toward the US decision. After the Egyptian revolution in 2011, the mentality of the Egyptian public has changed. They feel ashamed about their country's yielding to the US during the Hosni Mubarak era. They think the revolution brought not only an end to an autocratic era, but also a chance for country's independence and aspiration on the world stage. If the transitional government behaves too hastily in seeking US assistance, it is sure to lose marks with the public. Second, after the Egyptian military overthrew the government of former president Mohamed Morsi, Gulf countries promised $12 billion assistance right away. In comparison, the US' annual $1.55 billion aid is only a drop in the bucket.US President Barack Obama must have struggled with imposing such measures. He wants to maintain a strategic alliance with Egypt; but he also has to consider voices in Congress that advocate heavy sanctions. After thinking it over, the US announced these perfunctory and symbolic sanctions. It's not hard to imagine how effective they can really be.The key of the sanction plan is only to temporarily stop the hand-over of some weapons. The US and Egypt will continue cooperation in a number of areas such as training Egyptian military forces, anti-terrorism, anti-proliferation and security in Sinai Peninsula. From Washington's perspective, as long as Egypt moves toward democracy, assistance can be resumed. The parliamentary and presidential elections next year are almost certain. It will be time for the US to commit its promise then.Egypt needs US assistance, while the US needs Egypt's strategic position. General James Mattis who retired this year as head of the US military's Central Command once commented about the strategic value of Egypt, "We need them for the Suez Canal, we need them for the peace treaty with Israel, we need them for the over-flights, and we need them for the continued fight against violent extremists." The Egyptian transitional government and military are well aware of this.Israel, as Egypt's neighbor, supported the Egyptian military ousting Morsi. It even told Egypt not to worry about the US sanctions, as that if the US goes too far, Israel will mobilize the pro-Israel lobby in Washington.Since Morsi's fall, Egyptian society has become more and more split, and all factions have a more negative attitude toward the US. Morsi supporters believe the US is hypocritical: While the US calls for democracy, it gave tacit permission to the Egyptian military to oust their elected president. Those opposing Morsi think the US is arrogant and pompous: It knows little about the situation in Egypt and turned a blind eye to what Morsi did over in the past year.If the US really wishes for a stable Egypt and a more solid strategic relationship, sanctions won't help much. The real problem for Egypt is the economy. The US should act sincerely to help Egypt restore its economy, the effect of which would be much greater than Senator John McCain's recent preaching in Cairo.The author is a reporter with People's Daily who is currently stationed in Egypt. [url=http://www.absolutelyfreeplans.com/plan.html]cheap jordans[/url] "The money's great, just hope that's going to sort itself out over time and I can keep playing golf ... it's a pretty good job." http://www.hospitalitystaff.com/news.html
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Beijing and its neighboring city Zhangjiakou have been given a green light by the Chinese Olympic Committee to jointly bid for the 2022 Winter Olympic Games.Beijing, host city of the 2008 Summer Games, bids to stage the ice events while Zhangjiakou, North China's Hebei Province seeks hosting rights for snow sports, the Xinhua News Agency quoted the COC as saying Tuesday.According to the report, the International Olympic Committee (IOC) will finalize the candidate list in July 2014 and select the host city in July 2015.Almaty, Kazakhstan has already officially lodged a bid for the 2022 Games, the AP reported. Poland and Slovakia are reportedly to officially launch their joint bid on Thursday. Other potential contenders include Oslo, Munich and a city in Ukraine.If the Beijing-Zhangjiakou bid succeeds, Beijing will make history by becoming the first city to host both the Summer and Winter Games.Yang Yang, an Olympic champion for speed skating and member of the IOC, Tuesday told news portal qq.com that the South Korean city of Pyeongchang's hosting the 2018 Winter Games may to some extent undermine the Chinese cities' bid, as it may go against the unwritten rule of rotation in different regions. However, she said there are many factors affecting the bid, including "the bidder's own qualifications, rivals' conditions and the international situation." The 2008 Beijing Games have widely been viewed as a coming-out party for China, which saw a leap in its comprehensive strength after decades of reform and opening-up, while boosting Chinese people's national pride.The announcement of the 2022 Winter Games bid Tuesday soon became a hot topic among the public.Compared with the overwhelming support for the 2008 Games, the public was divided over the new bid.A poll conducted by news portal ifeng.com Tuesday night showed that about 31 percent of over 18,000 Net users surveyed supported the bid, saying it will help elevate China's influence in the world. About 33 percent of Net users strongly opposed the idea, noting that it will be a waste of labor and money as the Winter Games would only draw limited attention. Another 20 percent said they do not support the bid, citing the smoggy weather in Beijing.Liu Weixin, a research fellow for regional economics with the Chinese Academy of Social Sciences, said that the success of the 2008 Beijing Games was a result of support from across the nation. "The Games pushed infrastructure construction in Beijing, such as its subway system. However, development is not brought by profits generated by the Games but by the mobilization of national resources," he said, noting he is skeptical whether Zhangjiakou could benefit from the bid as Beijing did in 2008.Zhangjiakou, which is 200 kilometers northwest of Beijing, is a third-tier city, with a GDP of 123.4 billion yuan ($20.3 billion) in 2012.He Jun, a senior analyst with the Beijing-based consultancy Anbound Group, said he expects local authorities to use the opportunity to roll out projects on infrastructure investment, and predicts a hike in the city's property prices. "The projects, which have already been planned, such as the intercity railway linking Beijing and Zhangjiakou, will see an acceleration in construction."The express railway will start construction by the end of this year, cutting traveling time between the two cities to some 40 minutes from nearly 5 hours, the Beijing Daily reported.The air quality in Beijing and its surrounding region is believed to be a disadvantage for the bid. Coal burning in winter makes the hazardous smog even worse.To address people's growing dissatisfaction on the issue, Beijing adopted an emergency program to handle air pollution last month.Zhang Kai, a climate and energy campaigner with Greenpeace, said the bid for the Winter Games will have the authorities intensifying their efforts to clean up the air, as some temporary measures including closure of plants were taken for the 2008 Games. [url=http://lateblooms.com/contactus.html]cheap michael kors[/url] The plans were this week submitted to the City of Lincoln Council. If the project progresses as expected, the bridge could be up by the end of 2015. http://www.beunos.com/book.htm
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As below-trend GDP growth and high unemployment continue to afflict most advanced economies, their central banks have resorted to increasingly unconventional monetary policy. An alphabet soup of measures has been served up: ZIRP (zero-interest-rate policy); QE (quantitative easing, or purchases of government bonds to reduce long-term rates when short-term policy rates are zero); CE (credit easing, or purchases of private assets aimed at lowering the private sector's cost of capital); and FG (forward guidance, or the commitment to maintain QE or ZIRP until, say, the unemployment rate reaches a certain target). Some have gone as far as proposing NIRP (negative-interest-rate policy).And yet, through it all, growth rates have remained stubbornly low and unemployment rates unacceptably high, partly because the increase in money supply following QE has not led to credit creation to finance private consumption or investment. Instead, banks have hoarded the increase in the monetary base in the form of idle excess reserves. There is a credit crunch, as banks with insufficient capital do not want to lend to risky borrowers, while slow growth and high levels of household debt have also depressed credit demand.As a result, all of this excess liquidity is flowing to the financial sector rather than the real economy. Near-zero policy rates encourage "carry trades" - debt-financed investment in higher-yielding risky assets such as longer-term government and private bonds, equities, commodities and currencies of countries with high interest rates. The result has been frothy financial markets that could eventually turn bubbly.Indeed, the US stock market and many others have rebounded more than 100 percent since the lows of 2009; issuance of high-yield "junk bonds" is back to its 2007 level; and interest rates on such bonds are falling. Moreover, low interest rates are leading to high and rising home prices - possibly real estate bubbles - in advanced economies and emerging markets alike, including Switzerland, Sweden, Norway, Germany, France, Singapore, Brazil, China, Australia, New Zealand, and Canada.The collapse from 2007 to 2009 of equity, credit, and housing bubbles in the US, the UK, Spain, Ireland, Iceland, and Dubai led to severe financial crises and economic damage. So, are we at risk of another cycle of financial boom and bust?Some policymakers - like Janet Yellen, who is likely to be confirmed as the next Chair of the US Federal Reserve - argue that we should not worry too much. Central banks, they argue, now have two goals: restoring robust growth and low unemployment with low inflation, and maintaining financial stability without bubbles. Moreover, they have two instruments to achieve these goals: the policy interest rate, which will be kept low for long and raised only gradually to boost growth; and macro-prudential regulation and supervision of the financial system (macro-pru for short), which will be used to control credit and prevent bubbles.But some critics, like Fed Governor Jeremy Stein, argue that macro-pru policies to control credit and leverage - such as limits on loan-to-value ratios for mortgages, bigger capital buffers for banks that extend risky loans, and tighter underwriting standards - may not work. Not only are they untested, but restricting leverage in some parts of the banking system would merely cause the liquidity from zero rates to flow to other parts of it, while trying to restrict leverage entirely would simply drive the liquidity into the less-regulated shadow banking system. According to Stein, only monetary policy (higher policy interest rates) "gets in all of the cracks" of the financial system and prevents asset bubbles.The trouble is that if macro-pru does not work, the interest rate would have to serve two opposing goals: economic recovery and financial stability. If policymakers go slow on raising rates to encourage faster economic recovery, they risk causing the mother of all asset bubbles, eventually leading to a bust, another massive financial crisis, and a rapid slide into recession. But if they try to prick bubbles early on with higher interest rates, they will crash bond markets and kill the recovery, causing much economic and financial damage. So, unless macro-pru works as planned, policymakers are damned if they do and damned if they don't.For now, policymakers in countries with frothy credit, equity, and housing markets have avoided raising policy rates, given slow economic growth. 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