Posted in Global Affairs

Buckle up, the world is headed to a global recession

Recent Nobel Prize winner, Paul Krugman and other economists recon that world is headed to a global recession. The amount of money pumped by central banks to stable the financial markets is a mind-boggling, number crunching in excess of US$ 2 trillion (billion is obsolete these days!)

Emerging economies will be worst hit, as spending across the globe will be cautious. If US does shit, it pollutes all. So what is the cause? The sub-prime mortgage crisis which first hit last year, or was it greed, as all financial institutions reported inflated profits, CEOs taking million in stocks, signing fees and bonuses. Investor confidence is pretty low despite the bailout plans, it just shows that the current financial markets were euphoria, figures created to please, to create jobs, profits, and for the Bretton-Woods institutes to tell us that the global economy is growing.

Global recession

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Posted in Global Affairs

Peace in Caucasus

A nice piece by Gorbachev. One clear implication that has come out from the war is that it has made Russia’s neighbours more weary of the threat possed by the Red Army and their ambitions in the region. Poland became the latest member to join the missle shield and Georgia’s joining NATO will now accelerate, exactly what Russia didn’t want!

Peace in Caucasus

Posted in Global Affairs

BBC blackout (Georgia-Russia war)

BBC World experienced a sudden signal black out yesterday for about 20 minutes at about 7.20 PM (local time), the timing could be far from coincidental as a Russian diplomat on a live interview tried to justify their deep operations akin to what NATO forces did in Serbia. Originally, Russia stated that its operations were limited to the break away regions of Abkhazia and South Ossetia until Georgia pulls back all its forces. Russia has given most of the residents passport and hence their subjects to protect. They later changed their statement on the deep incursion to avoid Georgians from regrouping for further attacks.

The regions are also pro-Russia to avoid Georgia from attacking it and to maintain its autonomous independence. And when Georgia last week entered Tskhinvali they took the bait for a long wanted Russian offensive.

Source: BBC World

Source: BBC World

For the next 10 minutes the screen was black, and for the remaining time a static message from DIGITURK on an orange background with one of the words in Turkish ‘technik’ confirmed that there was a technical problem. May be this was an on purpose off-air command. Sensing what the Russian diplomat would state, it would not be advisable to echo globally, or were there are any security concerns? As counter accusations flew from both states, any misinterpretation could lead to serious escalations.

If this were to be true, such an immediate response may have been from the British higher authorities (highly unlikely) or a deliberate action by the relay station in Turkey. Also modern technologies can jam signals and could have been a military intelligence operation. Or was it a BBC action on its own? BBC World later replayed the interview in full.

Also interesting is that the world’s second largest oil pipeline from neighbouring oil rich Azerbaijan passes Georgia onto Turkey and central Europe. Definitely, Turkey is closely watching the storm-in-the-tea cup of its neighbour, and its own energy worries from further unprecedented developments.

For the Red Army this operation is seen as flexing muscles, and a warning to the west on not to mingle on affairs around its borders. Most of the former USSR break away states are pro-US, and the signing by Czech to deploy US missile shield is seen as a step to far on what Russia sees a ring closing out around it borders. US claims the shield will protect against missile launches from rouge states such as North Korea or Iran, Russia claims the missiles are pointed against them remnant of the cold war.

While as Bush states the “invasion” as “unacceptable in the 21st Century” and a “disproportionate response”, does the world have to be reminded of their invasion of Iraq, destroying a sovereign nation into a worse state than what is previously was?

Day-by-day: Georgia-Russia crisis
http://news.bbc.co.uk/2/hi/europe/7551576.stm

Q&A: Violence in South Ossetia
http://news.bbc.co.uk/2/hi/europe/7549736.stm

In pictures: Georgia in crisis
http://news.bbc.co.uk/2/hi/in_pictures/7554636.stm

Voices on Georgia-Russia conflict
http://news.bbc.co.uk/2/hi/in_depth/7554420.stm

Press weighs conflict in Georgia
http://news.bbc.co.uk/2/hi/europe/7554065.stm