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The euro has been rescued for the moment, but European politicians have thrown the foundations of Europe's common currency overboard with their unprecedented bailout package. In the longer term, the dangers of the crisis can only increase, and the flood of billions of euros could also lead to inflation

The United States officials began talking to their counterparts about an American concept: overwhelming force. "It's all about psychology," said the senior official. "You have to convince people that the government will get its act together."

The deal, negotiated by Turkey and Brazil, calls for Iran to ship 1,200 kilograms (2,640 pounds) of low enriched uranium to Turkey, where it would be stored. In exchange, after one year, Iran would have the right to receive about 265 pounds of material enriched to 20 percent from Russia and France.

The 750 billion euro package the European Union passed last week to prop up the common currency has been heavily criticized in Germany. Former Bundesbank head Karl Otto Pöhl told SPIEGEL that Greece may ultimately have to opt out, and that the foundation of the euro has been fundamentally weakened.

Trading derivatives on regulated exchanges would be a major step forward, but it may no longer be enough. Economic bubbles are not recognized by those inside of them, the Congress of the united States being no exception. The $604.6 trillion derivatives bubble, which is equal to more than ten times world GDP, is a global issue. If existing OTC derivatives remain in place and there are no restrictions on what banks can trade derivatives, there is no actual or immediate reduction of systemic risk. Thus, the risks that led to the financial crisis in 2008 are likely to remain present in the global financial system for years to come. In fact, many banks have more CDS risk now than in 2008. Passing a bank-approved version of the financial reform bill, while it may be portrayed as a political victory or serve to calm financial markets temporarily, is unlikely to prevent another global financial crisis.

The country's largest banks and trade groups have hired more than 240 former government officials and legislative staffers to lobby on their behalf in Congress, part of a broader campaign by Wall Street firms to limit the impact of proposed reforms on their industry, according to a report issued Tuesday by liberal groups.

Europe has put up 750 billion euros in an effort to stop speculation against the European common currency. Still, it remains to be seen if financial markets will learn their lesson. After all, speculators aren't even being punished for the damage they have caused. But they should be.

As President Luiz Inácio Lula da Silva heads to Tehran this weekend to make what many Western diplomats consider a last-ditch attempt at persuading Iran to temper its nuclear ambitions, officials in Washington have expressed concern that the effort could backfire, helping the Islamic republic to block - or at least delay - the United States and its allies from imposing sanctions.

Financial markets have become increasingly volatile, largely because of computer trading on a massive scale. A "transaction tax" could slow down the entire operation

On Wednesday, the government's partial ban on so-called naked short-selling took effect, as part of Berlin's effort to protect its biggest financial institutions and the euro currency from investors who have been betting against them.

Iran's nuclear fuel swap deal with Brazil and Turkey could be a positive step forward in resolving the international impasse over its nuclear program. Even as the United States is stepping up efforts toward UN-mandated fresh sanctions against Iran, it is praiseworthy that members of the international community have stuck to diplomatic means to defuse the tension.

Europeans have grown accustomed to seeing government workers shut down their countries when provoked. At this time of huge deficits from Washington to the smallest towns, government workers in the U.S. also face significant cutbacks.

Right now, according to a number of studies, we are losing about $100 billion every year because corporate America and the very wealthy are stashing their money in tax havens like the Cayman Islands and Bermuda. We should be aware that in 2009, ExxonMobil made $19 billion in profits and not only did the company not pay anything in taxes, it got a $106 million refund from the IRS. We should also be aware that since 1997, we have almost tripled funding for the military. So if we are serious about reducing the deficit, those are things we need to look at-not at Social Security, not programs everyday Americans need.

Interest rates are rising in the long term. Businesses will have to adapt, while governments must prevent an era of creeping financial protectionism.

From whatever angle you approach it, the present offers no way out. This is not the least of its virtues. From those who seek hope above all, it tears away every firm ground. Those who claim to have solutions are contradicted almost immediately. Everyone agrees that things can only get worse. "The future has no future" is the wisdom of an age that, for all its appearance of perfect normalcy, has reached the level of consciousness of the first punks. 

For thirty years, now, Republicans have been yammering about small government, deficits, the glories of the free market, and the incompetence and wastefulness of government. It's all been a big lie, part of a well funded and cleverly executed coup d'etat, designed to enable the ultra rich and corporations to literally take power out of the hands of government and money out of the pockets of individual citizens.

The catastrophe in Japan has made apparent just how fragile the global economy has become. Factories around the world have had to slow production due to a lack of parts. But the problems are surmountable -- provided the nuclear disaster in Fukushima doesn't worsen.

All this signals a clear shift in the development agenda. Traditionally, this was an agenda generated in the developed world that was implemented in - and, indeed, often imposed on - the developing world. The United States, Europe, and Japan will continue to be significant sources of economic resources and ideas, but the emerging markets are now entering this arena and will become significant players. Countries such as Brazil, China, India, and South Africa will be both donors and recipients of resources for development and of best practices for how to use them. A large portion of the world's poor live within their borders, yet they have achieved new respect on the global scene in economic, political, and intellectual terms. In fact, development has never been something that the rich bestowed on the poor but rather something the poor achieved for themselves. It appears that the Western powers are finally waking up to this truth in light of a financial crisis that, for them, is by no means over.

The Big Money economy is booming. According to a new Commerce Department report, third-quarter profits of American businesses rose at an annual record-breaking $1.659 trillion - besting even the boom year of 2006 (in nominal dollars). Profits have soared for seven consecutive quarters now, matching or beating their fastest pace in history. Executive pay is linked to profits, so top pay is soaring as well. Higher profits are also translating into the nice gains in the stock market, which is a boon to everyone with lots of financial assets. And Wall Street is back. Bonuses on the Street are expected to rise about 5 percent this year, according to a survey by compensation consultants Johnson Associates Inc. But nothing is trickling down to the Average Worker economy. Job growth is still anemic. At October's rate of only 50,000 new private-sector jobs, unemployment won't get down to pre-recession levels for twenty years. And almost half of October's new jobs were in temporary help.

All across the United States, large and small cities are closing public libraries or curtailing their hours of operations. Detroit, I read a few days ago, may close all of its branches and Denver half of its own: decisions that will undoubtedly put hundreds of its employees out of work. When you count the families all over this country who don't have computers or can't afford Internet connections and rely on the ones in libraries to look for jobs, the consequences will be even more dire. People everywhere are unhappy about these closings, and so are mayors making the hard decisions. But with roads and streets left in disrepair, teachers, policemen and firemen being laid off, and politicians in both parties pledging never to raise taxes, no matter what happens to our quality of life, the outlook is bleak. "The greatest nation on earth," as we still call ourselves, no longer has the political will to arrest its visible and precipitous decline and save the institutions on which the workings of our democracy depend.

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