UK - Living with high debt may be the "optimal policy" for countries such as the UK, Germany and the US, according to IMF economists. George Osborne's obsession with reducing Britain's debt mountain may do more harm than good, research by the International Monetary Fund (IMF) has suggested. While advanced nations are facing some of the highest debt ratios since World War II, IMF economists cited research by Moody's Analytics that suggested countries such as the UK, US and Canada could afford to live "forever" with relatively high debt shares compared with their pre-crisis averages.
GREECE - Even if Greece leaves the euro, Europe has to ensure the country's economy thrives. Otherwise it puts the entire EMU project at risk. Nobody should underestimate the political hurricane that will follow if Europe proves incapable of holding monetary union together, and Greece spins out of control.
USA - In the age of derivatives, swaps, and electronic money transfers, a new form of warfare has emerged: financial warfare. Recently, the US has passed sanctions on countries such as Syria, Venezuela, and North Korea , but the majority of energy related sanctions passed have been targeted at Iran and Russia. An estimated 68 percent of Russia's government revenue is derived from oil and gas exports, while 80 percent of Iran's revenue comes from oil exports. That presents a very large target for the use of financial weapons.
USA - Every Spring there is a barrage of articles regarding the risk of skin cancer being caused by too much exposure to the sun. The same articles also sing the praises of sunscreen as a deterrent while offering no evidence whatsoever. But is the sun really the primary culprit? What’s really going on here?
ISRAEL - ISIS terrorists in the Sinai Peninsula linked to the radical Islamic State group reportedly threatened Thursday to strike the port in Israel’s southern city of Eilat “in the coming days,” according to Egyptian media.
“They have said, Come, and let us cut them off from being a nation; that the name of Israel may be no more in remembrance.” Psalm 83:4 (KJV)
According to reports, the Islamist group Sinai Province, formerly known as Ansar Bait al-Maqdis, “threatened to strike the Eilat Port, following coordination with Islamic State’s wing in the Gaza Strip.”
USA - US government agencies have been hit by "massive breach" affecting the personal data of millions of federal workers, officials said. The Office of Personnel Management confirmed on Thursday that almost four million current and past employees have been affected. The agency serves as the human resource department for the federal government. US officials suspect that the cyber attack originated in China, US media outlets reported.
UK - A key problem for David Cameron and his EU agenda is that he does not know what it is he wants. Is it to keep control over the growing Europhobe wing within his Conservative Party which today embraces him as victor against all odds, but which could stab him in the back tomorrow? Is it to defend the national interests of a more insular and inward looking United Kingdom in view of the winds blowing in from the Scottish Highlands? Or, finally, could it be that Cameron is convinced – as many of us are – of the need to reform the European Union to adapt it to the 21st century and tackle its legitimacy crisis?
VATICAN - In Christian life, everything revolves around the Trinity. This was the crux of Pope Francis’ address at the Angelus on Sunday, 31 May, in St Peter’s Square. He also invited the faithful to make the sign of the Cross, which embraces the meaning of this “infinite mystery”. Indeed, he remarked, the Trinity indicates to the faithful the model of “divine communion” and constitutes “the ultimate goal toward which our earthly pilgrimage is directed”. He then invited the faithful to “always hold high the ‘tone’” of the Christian witness and to entrust themselves to Mary, who “knew, worshiped, loved the mystery of the Most Holy Trinity”
GREECE - Greece's international creditors signalled on Wednesday they were ready to compromise to avert a debt default even as Athens warned it might skip an IMF loan repayment due this week. Prime Minister Alexis Tsipras visits Brussels later on Wednesday to see senior European officials, where he is expected to hear the terms of the plan drawn up this week at a meeting of top leaders, including German Chancellor Angela Merkel.
SAUDI ARABIA - Saudi Arabia's governing body denounced Israeli settlements in Jerusalem Monday as a violation of Palestinian human rights. The ministerial council also called for strategies to stop Israeli attempts to partition al-Aqsa Mosque and the detention of Palestinian citizens in the Holy City.
USA - The Lancet and the New England Journal of Medicine are the two most prestigious medical journals in the world. It is therefore striking that their chief editors have both publicly written that corruption is undermining science.
USA - US Homeland Secretary says he takes the findings "very seriously", as acting head of transport authority loses his job over report. Undercover US agents were able to smuggle mock explosives and weapons through 95 per cent of American airport checkpoints, a damning report has shown, according to ABC News.
USA - As we noted last week, one of the biggest problems for the Central Banks is actual physical cash. The financial system is predominantly comprised of digital money. Actual physical dollar bills and coins only amount to $1.36 trillion. This is only a little over 10% of the $10 trillion sitting in bank accounts. And it’s a tiny fraction of the $20 trillion in stocks, $38 trillion in bonds and $58 trillion in credit instruments floating around the system.
PHILIPPINES - Drought brought on by the mild El Niño now sweeping through the Pacific countries has affected more than half of the Philippines, the state weather bureau said. Based on its latest assessment, the Philippine Atmospheric, Geophysical, and Astronomical Services Administration (PAGASA) said at least 43 provinces have been affected by the drought, which has hit the country since early this year.
GREECE - Greek premier Alexis Tsipras has accused Europe's creditor powers of issuing "absurd demands" and come close to warning that his far-Left government will detonate a pan-European political and strategic crisis if pushed any further.