Group items tagged

With conditions deteriorating on the ground and the Taliban gaining strength across the country, coalition forces will be in an even worse position next year than they are now. The situation around the major cities of Jalalabad and Kabul is seriously deteriorating, and the state structure in the north is disappearing. In the southern city of Kandahar, a sustained U.S.-led effort has proved unable to dislodge the Taliban from their traditional stronghold; the Taliban have also launched a systematic campaign targeting anyone ready to work with the coalition, killing hundreds since last spring. Instead of being able to start pulling out troops next summer, as Obama has pledged, the United States will be forced to send additional troops just to hold ground. And the longer Washington waits, the harder it will be to negotiate. As the Taliban solidify their power, they will be less and less likely to talk. It's time to negotiate -- this is the only way forward.

the longer Washington waits, the harder it will be to negotiate. As the Taliban solidify their power, they will be less and less likely to talk.

With conditions deteriorating on the ground and the Taliban gaining strength across the country, coalition forces will be in an even worse position next year than they are now.

if large economies keep interest rates loose for too long, faster global growth could instead add fuel to the fire. Tighter monetary policy in the United States and the Euro area is still a way off, but may be edging closer.  The European Central Bank will conclude emergency lending in December. The rate on the final loans will be indexed to the ECB’s benchmark rate, rather than fixed at 1 percent, giving the Bank room to raise interest rates if needed. Unemployment, a key signal for central bankers considering raising rates, fell to 10 percent in the United States last week, but it is not yet clear if this improvement will persist.

These price surges could cause or temporarily conceal bad debts in a number of smaller economies, hurting investors who have turned to these markets. However, unless these surges continue, the risk to the global recovery will be contained. Dubai World’s recent near default illustrates the potential shocks that debt from bursting asset bubbles can cause. Similar problems could and probably will emerge in other economies which have been badly hit by the crisis, and where government finances are stretched, including Ireland, Greece, and the Baltics.

The pace of US home sales surged 7.4 percent in November, helping to bring down the inventory of for-sale homes to pre-recession levels. November's robust performance was fueled, however, by an extraordinary factor – the anticipated expiration of a tax break for first-time home buyers. First-time buyers accounted for 51 percent of purchases tracked in the report on previously owned homes, released by the National Association of Realtors Tuesday.

A case for optimism rests on several factors: Mortgage interest rates are low, Congress has extended the home buyers' tax credit through the first half of next year (it was set to expire at the end of November), and an improving job market next year could offset a continued high rate of mortgage defaults by households in financial trouble. While not auguring for a new housing boom, those forces could help keep the market on a path toward recovery.But other factors suggest that the housing market still faces significant headwinds. The biggest question mark is interest rates. The Federal Reserve has become a big investor in the mortgage market this year, creating demand for mortgage-backed bonds and thus pulling down the cost of loans for people buying homes. A 30-year fixed-rate loan averaged just 4.88 percent interest in November. But this month the Fed reaffirmed that it expects to complete its mortgage buying by the end of the first quarter of 2010.

Also weighing down the housing market is a large "shadow inventory," including homes in various stages of foreclosure. The record volume of foreclosures, highlighted in another report this week, shows no sign of stopping soon. In fact, "shadow inventory" continues to rise, according to a recent analysis by First American CoreLogic, which tracks the housing market.

. It's true that daily Chinese consumption surged from 4.8 million barrels per day in 2000 to 7.9 million barrels in 2008, while Indian demand rose from 2.1 to 3 million.

Middle Eastern countries will gobble up nearly 50 percent more oil than India in 2030, despite being home to just a fifth as many people. Oil: The Long Goodbye An FP Special Report The reason? Massive oil subsidies that put China and India to shame

A 20 percent cut in oil consumption by the world's wealthy countries in 2030 would completely offset the expected increase in Chinese demand; a similar cut in U.S. gas guzzling would neutralize the expected Indian increase

41% of the public says the United States plays a less important and powerful role as a world leader today than it did 10 years ago -- the highest percentage ever in a Pew Research survey.

44% of the public now says China is the world's leading economic power, while just 27% name the United States.

the percentage saying that the United States should "mind its own business internationally and let other countries get along the best they can on their own" has reached an all-time high of 49%.

In a flurry of coordinated television interviews, Defense Secretary Robert M. Gates, Secretary of State Hillary Rodham Clinton and other top administration officials said that any troop pullout beginning in July 2011 would be slow and that the Americans would only then be starting to transfer security responsibilities to Afghan forces under Mr. Obama’s new plan.