AUSTRALIA - Cardinal George Pell, Australia's most senior Catholic, has criticised the Pope on his last day, describing his historic resignation as destabilising, while questioning his political prowess.
UK - The Bank of England was last night accused of ‘crushing’ savers as the row over negative interest rates intensified. Charlie Bean, deputy governor at the central bank, admitted ‘there is nothing to stop us’ reducing rates to below zero to kick-start the economy – although he insisted there was no plan to do it ‘immediately’. His views emerged just a day after fellow deputy governor Paul Tucker said sub-zero rates should be considered to boost lending to businesses and households. But the proposal was greeted with disbelief by savers.
USA - It is no secret that the Department of Homeland Security was originally setup as a force to be used domestically against the American people. In the early 2000s, propaganda was used to sell the formation of this organization as a more effective way to protect the American people from Al-Qaeda.
USA - Gold’s 1.3% gain yesterday was its biggest one-day gain in three months, as Federal Reserve Chairman Ben Bernanke's defense of US debt monetisation confirmed bullion's inflation hedging appeal. Jim Grant, astute monetary economist and respected author of the Interest Rate Observer said in a Bloomberg interview overnight that the dollar would crash and a new Gold Standard would be the end result of the US Federal Reserve’s irresponsibilities. Grant says that he expects more quantitative easing from the US Fed, and likens their single mindedness to a doctor prescribing to a patient that is clearly overmedicated.
UK - The ILF was set up in 1988 as a stand-alone fund to which people with severe disabilities could apply for money for added carer hours. That extra money meant that people could afford to pay carers for the help that they needed – round-the-clock, in some cases – to live independent lives.
GERMANY - In the past year, Germany has more than doubled its arms exports to the Arab Gulf monarchies. Algeria, too, received more defense materiel than in 2011. This emerges from a response by the ministry of economics to a parliamentary question of the Left Party, the Süddeutsche Zeitung reported last week. In 2012, arms exports valued at €1.42 billion were approved for the countries of the Gulf Cooperation Council. In the previous year, these exports were just €570 million. At €1.24 billion, the largest share went to Saudi Arabia, nine times as much as the year before. Export permits for Bahrain and Qatar rose to €4.3 and €17.6 million, respectively.
BERLIN, GERMANY - The president of Italy canceled a dinner meeting Wednesday with Peer Steinbrück, Chancellor Angela Merkel’s challenger in the coming September elections, after Mr Steinbrück referred to two prominent Italian political figures as “clowns.”
USA - Journalist Bob Woodward on Wednesday criticized Barack Obama's handling of the automatic US budget cuts set to take effect this week, calling the president's decision to hold back on military deployments "madness."
USA - Positions hardened on Wednesday between President Barack Obama and Republican congressional leaders over the budget crisis even as they arranged to hold last-ditch talks to prevent harsh automatic spending cuts beginning this week.
USA - If we can’t even cut federal spending by 2.4 percent without much of the country throwing an absolute hissy fit, then what hope does America have? All of this whining and crying about the sequester is absolutely disgraceful.
RUSSIA - A magnitude 6.9 earthquake struck near the southern tip of Russia's Kamchatka peninsula, at a depth of around 52 km (33 miles), the US Geological Survey (USGS) reported on Thursday. The US Pacific Tsunami Warning Center said there was no threat of a destructive widespread tsunami, based on historical earthquake and tsunami data. The arc formed by the peninsula and the Kurile Islands stretching from Russia to Japan is one of the most seismically active areas in the world.
ITALY - Is the financial collapse of Italy going to be the final blow that breaks the back of Europe financially? Most people don't realize this, but Italy is actually the third largest debtor in the entire world after the United States and Japan.
FRANKFURT, GERMANY - The Italian economy would not find their way out of the recession, according to the pessimistic assessment by Lars Feld: "The sustainability of Italian public finances is in jeopardy. The euro crisis will therefore return shortly with a vengeance." Apparently, the Italians were not ready to move on the path of reform that has been taken by Mr Mario Monti, Feld said. "You can not expect that Italy's European partners or the ECB will stabilize the Italian economy, when its people are not ready for reform."
ITALY - Italy's electoral earthquake is “a catastrophe for the euro and the European Union”, according to Luxembourg’s foreign minister, Jean Asselborn. The verdict was much the same in chancelleries across the eurozone, especially in those countries already starting to feel the first wave of contagion.
GREECE - The troika is back in Athens this week and with all eyes on Italy, Greece feels it has little to fear. But important reforms have stalled and the government's belt-tightening efforts seem paralyzed. Politicians are playing for time and hoping for fresh money.