Written by Econintersect
Early Bird Headlines 17 January 2015
Econintersect: Here are some of the headlines we found to help you start your day. For more headlines see our afternoon feature for GEI members, What We Read Today, which has many more headlines and a number of article discussions to keep you abreast of what we have found interesting.
Global
The Geopolitics of Cheap Oil (Foreign Policy in Focus) The argument of many economists grappling with the problem of climate change was that the market would solve the problem. As fossil fuels became scarcer, they pointed out, the price of oil and natural gas would go up. And then other options, like solar and wind, would become cheaper, particularly as investment flowed into that sector and drove down the cost of new technologies. And voila: The invisible hand would gradually turn down the global thermostat. This article goes on with an extensive discussion of the geopolitical impact of fluctuating oil prices.
Iran sanctions lifted: Brace for oil shakeup (CNN) U.S. and European Union sanctions on Tehran were finally lifted on Saturday, restoring Iran’s access to world’s markets. Iran has been gearing up for this moment for months and could soon return to the top ranks of global oil producers. Iran is aiming to increase output by close to 1.5 million barrels by the end of 2016, taking daily production to 4.2 million, Iran’s oil minister Bijan Zanganeh told CNN in an exclusive interview. This would be an addition to global supply of about 2%, doubling the daily surplus now.
U.S.
With Liftoff Done, the Fed Revisits a $4.5 Trillion Quandary (Bloomberg) Federal Reserve officials who spent months debating their first interest-rate increase in almost a decade are turning next to the thorny question of what to do with a balance sheet equivalent to the size of Japan’s economy. Some are saying there is no need to rush into unwinding the Fed’s holdings. Econintersect: But most seem to think it should be done sooner or later. We are still asking why it ever needs to be done.
Obama unveils new wage insurance proposal for experienced workers (Al Jazeera) President Obama on Saturday laid out a plan to help support the income of workers who lose their jobs and end up in lower-paying positions, as part of a push to get unemployed Americans back to work. The proposal would offer experienced workers who now make less than $50,000 a form of wage insurance, allowing them to replace half of their lost pay. The benefit would cover up to $10,000 over two years.
Here’s the Thing About Terrorism Obama Won’t Tell You (Foreign Policy in Focus) Hat tip to Rob Carter. In the U.S. 51% of Americans are “worried that they or someone in their family would be a victim of terrorism“. According to Cato analyst John Mueller, your risk of dying this year from a terrorist attack in the United States is 1 in 3.5 million. In other words the fear is about 1.7 million times greater than the risk. Econontersect: That is what is known as paranoia.
Al Jazeera America to close down (Al Jazeera) Al Jazeera America will shutter its cable TV and digital operations by April 30 of this year, the company announced Wednesday. The decision by the AJAM board was “driven by the fact that our business model is simply not sustainable in light of the economic challenges in the U.S. media marketplace“, said AJAM CEO Al Anstey. Econintersect: This is a great loss for American media. We have found Al Jazeera to be a most unbiased reporter of U.S. news and featuring some things that are bypassed by “mainstream” media. The fact that such a high quality news service is unsustainable financially is a damning comment on the state of this country.
Bear market is here – expect another 15% plunge: Technician (CNBC) Stocks were hit by a rush of selling this week that landed all major indices back in correction territory. The S&P 500, Dow and Nasdaq are down a respective 12%, 12.7% and 12.4% from their 52-week high. As investors weigh on whether stocks will resume their bull run, one technician warns there could be significant downside ahead.
Burkina Faso
Burkina Faso hotel seizure ends; 4 jihadis, 28 others dead (Associated Press) The Al-Qaida fighters who stormed a popular hangout in Burkina Faso’s capital at dinnertime came with a mission to kill as many people as possible, firing at people as they moved to a nearby hotel and setting the cafe ablaze, survivors and officials said Saturday. When the gunfire stopped after a more than 12-hour siege, at least 28 people had been slain in an unprecedented attack on this West African country long spared the jihadist violence experienced by its neighbors. In addition four of the attackers were slain. If you don;t know where Burkina Faso is see yesterday’s Early Bird.
Iran
US, EU lift sanctions against Iran amid landmark nuke deal (Associated Press) The U.N. nuclear agency certified Saturday that Iran has met all of its commitments under last summer’s landmark nuclear deal, crowning years of U.S.-led efforts to crimp Iran’s ability to make atomic weapons. For Iran, the move lifts Western economic sanctions that have been in place for years, unlocking access to $100 billion in frozen assets and unleashing new opportunities for its battered economy.
After vote, China tells Taiwan to abandon independence ‘hallucination’ (Reuters) Taiwan should abandon its “hallucinations” about pushing for independence, as any moves toward it would be a “poison”, Chinese state-run media said after a landslide victory for the island’s independence-leaning opposition. Tsai Ing-wen and her Democratic Progressive Party (DPP) won a convincing victory in both presidential and parliamentary elections on Saturday, in what could usher in a new round of instability with China, which claims self-ruled Taiwan as its own. Tsai pledged to maintain peace with its giant neighbor China, while China’s Taiwan Affairs Office warned it would oppose any move toward independence and that Beijing was determined to defend the country’s sovereignty.
