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"The Burj Dubai tower officially opened yesterday, six years after construction began on the $4.1 billion, half-mile-high skyscraper. Conceived as a monument to the Arab city-state's economic ambitions, the Burj today looks more like a modern-day Tower of Babel. Dubai has been wracked by a debt crisis, and the building stands mostly empty and unwanted by the international tenants for whom it was supposedly built. But then, the main argument for these monuments has never been purely economic. In early 20th-century New York, one tycoon after another vied to build the world's tallest building, adding their marks to Manhattan's iconic skyline. Both General Motors and Chrysler in their day saw fit to build testaments to their economic might in the form of tall towers. Later on, the gods of vanity shifted to the Far East, where Malaysia's Petronas Towers and more recently Taiwan's Taipei 101 vied to be the world's tallest. Today a half-dozen Asian skyscrapers put Chicago's Sears Tower (now the Willis Tower) in the shade. As for Dubai, the Burj is merely the most recent bauble in a quest for excess that includes the world's largest man-made islands, indoor shopping mall and indoor ski resort. It even boasts the world's heaviest gold ring, weighing in at something like 62 kilos. The economic theory behind all this, we suppose, is that being the land of superlatives confers a comparative advantage to a place of otherwise few charms and little human capital-though we do wonder who proposes to wear that ring. If the past century has taught us anything, it's that there will always be another, bigger building built somewhere, and Dubai cannot hope to keep up indefinitely. By contrast, in cities such as Houston and Hong Kong the skylines are not the cause of their economic prosperity, but merely one visible manifestation of it. That's a prosperity that has been built over the years on the basis of those old reliables: economic freedom, the rule of law, hard work and sound ma

"For decades, China was viewed by U.S. strategists as a struggling communist nation with a massive population that really did not represent any kind of strategic threat to the United States at all. But that has now dramatically changed. Thanks to trade agreements that are extremely favorable to China, the "Great Dragon" has risen and has become a formidable economic machine. Already accounting for a fifth of humanity, this new economic muscle has also allowed Beijing to dramatically reform and upgrade the Chinese military. Now China is without a doubt a world superpower and it stands poised to be a major player on the world stage during the last days. So just how powerful of an economic force is China now? Well, in 2010 China is expected to replace Japan as the world's second-largest economy. Not only that, but China has overtaken Germany and is now the biggest exporter in the entire world. Let that sink in for a bit. China sells more stuff to other countries than anyone else in the world. That fact alone is enough to make China an economic superpower. Citizens of the U.S. like to think of themselves as the greatest economic superpower, but the reality is that the average American is drowning in debt. In fact, the average American piled up even more debt this past Christmas season buying cheap plastic stuff made in China to exchange with family members around the ole Christmas tree."

"Even though the U.S. financial system nearly experienced a total meltdown in late 2008, the truth is that most Americans simply have no idea what is happening to the U.S. economy. Most people seem to think that the nasty little recession that we have just been through is almost over and that we will be experiencing another time of economic growth and prosperity very shortly. But this time around that is not the case. The reality is that we are being sucked into an economic black hole from which the U.S. economy will never fully recover. The problem is debt. Collectively, the U.S. government, the state governments, corporate America and American consumers have accumulated the biggest mountain of debt in the history of the world. Our massive debt binge has financed our tremendous growth and prosperity over the last couple of decades, but now the day of reckoning is here. And it is going to be painful. The following are 20 reasons why the U.S. economy is dying and is simply not going to recover.... #1) Do you remember that massive wave of subprime mortgages that defaulted in 2007 and 2008 and caused the biggest financial crisis since the Great Depression? Well, the "second wave" of mortgage defaults in on the way and there is simply no way that we are going to be able to avoid it. A huge mountain of mortgages is going to reset starting in 2010, and once those mortgage payments go up there are once again going to be millons of people who simply cannot pay their mortgages. The chart below reveals just how bad the second wave of adjustable rate mortgages is likely to be over the next several years...."

Republican presidential candidate Donald Trump will propose one of the largest tax cuts since Ronald Reagan in a new economic blueprint he plans to announce next week. Trump will reiterate his plan to cut the corporate tax rate to 15 percent, Heritage Foundation chief economist Stephen Moore told Bloomberg Television. The nominee's plan also expects to lower the cost of this tax cut in terms of lost tax revenue by about two-thirds, to $3 trillion, Moore said, though he did not specify a timeline for this to occur. "If you're a working-class American, there's no question that an agenda that cuts taxes, that gets rids of regulations, redoes some of these trade deals in ways that are pro-America, is going to help," he told Bloomberg. Trump plans to unveil his plan for "revitalizing the American economy" in a speech Monday at the Detroit Economic Club.

" Published: 7:00AM GMT 03 Jan 2010 The year is 2050, and a diplomatic dispute between China and Britain risks escalating into all-out war. But rather than launching a barrage of ballistic missiles and jet fighters to destroy key British targets, Beijing has a far simpler plan for defeating its enemy. It simply turns off the lights. At the flick of a switch elite teams of Chinese hackers attached to the People's Liberation Army (PLA) launch a hi-tech assault on Britain's computer systems, with devastating consequences. Within minutes the country's power stations, water companies, air traffic control, government and financial systems are totally shut down. Related Articles * 'Dad believed he was a July 7 bomber' * Lord Adonis: no need to cut travel to save the planet, says Transport Secretary * The Korean crisis is China's chance to show the world it has changed * Is Britain no longer special to America? * We must treat China as a friend and ally in this financial crisis * New Zealand hockey coach banished to stands for match officials' 'pants' decision Britain's attempt to respond by launching nuclear-armed Trident missiles at China has to be abandoned, as the computer systems that control the weapons system are no longer functioning. At a time when relations between China and Britain are supposed to be improving, the prospect of Beijing launching a cyber attack against Britain and its allies might seem to be the stuff of fantasy. After all, it is only two years since Gordon Brown made a highly successful visit to Beijing where the two countries agreed to increase trade by 50 per cent by this year, and to cooperate on a range of issues, such as global warming. As one of the world's leading economic powers, China's role on the world stage has transformed dramatically over the past decade, with the huge wealth that Beijing has accumulated from its impressive economic growth playing a key role in sup

"Would you ever accept government welfare? Would you look down on someone who does? Well, if you would look down on a fellow American who receives food stamps then get ready to look down on a massive sea of people. The truth is that over 37 million Americans now receive food stamps, and the program is expanding at a pace of about 20,000 people a day. As hordes of Americans have been forced out of their jobs and their homes, millions are finding that the only way they can make it is to accept food stamps. For many it is a tremendously humbling moment to turn to the government for help, and for so many millions to be dependent on the food stamps program is yet another indication of how deep the economic despair in America has gotten. Most of the time you won't even notice them being used at the checkout counters. Today food stamps take the form of inconspicuous plastic cards and they can be used to purchase a wide variety of food items. A record 37.2 million people, which is approximately one out of every eight Americans, received food stamps in September, and that number is growing rapidly. In particular, children are being enrolled in this program in staggering numbers. One out of every four children in America now gets assistance from food stamps each month. In fact, it is projected that half of all U.S. kids will be on food stamps at some point in their lives. So if nobody in your family has ever had to go on food stamps consider yourself to be very fortunate. Things are particularly bad in rural areas such as Tennessee. Nearly 1,186,000 people who live in Tennessee, or more than one in six residents, currently receive some kind of food stamp assistance and that number is rapidly increasing. But there are places where things are even worse. In fact, there are 239 counties in the United States where at least a quarter of the population now receives food stamps. Not only that, but it has now come out that about one in 50 Americans lives in a hous

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"Republicans scoff at the "Jobs for Main Street Act" title that House Democrats put on their $174 billion package last month. They refer to it as "son of the stimulus," the $787 billion economic recovery plan of nearly a year ago that they say was ineffective at producing jobs. In its last vote of 2009, the House narrowly passed the bill, 217-212, without a single Republican supporter. Democrats tick off the job prospects from the House bill's $75 billion in infrastructure and public sector spending: tens of thousands of new construction jobs, 5,500 more police officers, 25,000 additional AmeriCorps members, 250,000 summer jobs for disadvantaged youth, 14,000 part-time jobs for parks and forestry workers. "Why don't we just put everyone in the United States on the federal government payroll and call it a day?" said Rep. Jerry Lewis, California Republican. (emphasis added)"

"A rather serious problem, which seems largely to have been ignored by those urging a race to build windmills and solar panels, is the fact that the wind does not always blow, nor does the sun always shine. And as yet there is no large-scale economical method of storing electricity for later use. This would seem to imply a need to retain the present system of power production alongside the new system that is to be based on wind and sun, or else to grow accustomed to protracted periods without power. Or is it the case perhaps that this problem is to be taken as an opportunity for even greater gains in employment in connection with wind and solar power? These might be achieved if, in all those times when the wind does not blow or the sun does not shine, human beings were employed in rotating copper-clad generator shafts, in a manner similar to that of rotating a grindstone in a gristmill, only in the presence of surrounding magnets, so that electricity could be produced by the rotation. (I don't know how much, if any, electricity might actually be produced in this way. But it would provide at least the appearance of employment in the attempt, which is all that many other "stimulus" programs accomplish.) (emphasis added)"

"If you asked most people on the street which nation produces the most oil most of them would say that the answer is Saudi Arabia of course. But they would be dead wrong. The truth is that Russia is the number one oil producer in the world. Not only that, but Russia is also the number one natural gas exporter in the world. So what does that mean? It means that Russia is the top energy superpower on the globe. Russia pumped more than 10 million barrels of oil per day during November, and now they have done something which will give them even more power over energy. Russia has just finished a new oil pipeline and port complex that enables them to export more oil than Saudi Arabia. On December 28th, Russian Prime Minister Vladimir Putin was on hand to celebrate the opening of Russia's first modern Pacific-based oil export facilities. The Pacific port of Kozmino is a project that Putin is extremely proud of, and it promises to literally change the world. So what makes this port so significant? The new Kozmino complex promises to be a gate through which Russia's vast East Siberian oilfields will supply oil for Asia's energy-hungry economies. Notice that the Middle East and the West are not part of that equation. According to Reuters, the first oil transport will load at Kozmino on January 15th. Hong Kong is scheduled to receive that first shipment. But this is just the latest sign that Russia has more than recovered from their past economic woes. In fact, the Russian Bear is back."

"LONDON - New regulations that took effect Wednesday require skilled foreign workers who extend their stay in Britain to obtain identity cards containing biometric data, including finger prints and photographs. The UK Border Agency rules are part of the extended rollout of a 2008 program that will require all foreign workers who plan to stay in Britain six months or longer to obtain an ID card by April 2011. The rules apply only to workers from outside the European Economic Area and Switzerland. British officials say the ID cards for foreign workers will help combat illegal workers and illegal immigration and allow cardholders to establish their identity and immigration status, making it easier for them to access various benefits they are entitled to. The cards, in conjunction with workers' passports, can also be used to facilitate entry into Britain after trips abroad, officials said. Skilled workers are defined as those with a job sponsor who can establish their skills and earnings potential on a point-based system that also takes into account their English language ability."

"2009 ended with a flurry of important events on the climate-change front. In November, the Climategate scandal broke. An anonymous whistle-blower released over 1,000 e-mails from key scientists (both British and American) in the alarmist climate-change camp. The e-mails revealed a shocking pattern of the abuse of science by both American and British scientists collaborating at the Climate Research Unit of East Anglia University the source of various global-warming studies that have formed the alleged scientific justification for capping human CO2 emissions. E. Calvin Beisner wrote that the e-mails showed: serious scientific malfeasance the fabrication, corruption, destruction, hiding, and cherry-picking of data as well as intimidation of dissenting scientists and journal editors and efforts to evade disclosure under Freedom of Information Laws in the United Kingdom and the United States. James Delingpoles blog found Conspiracy, collusion manipulation of data, private admissions of flaws in their public claims and much more. The incriminating e-mails were followed in December by charges from Russia's Institute of Economic Analysis that Britain's Meteorological Office deliberately skewed Russia's temperature data. With the underlying climate-change science so thoroughly compromised, did policymakers pause to reconsider the need for colossally expensive CO2-curbing policies? No. Instead they are locked into automatic-pilot mode. In the United States, Sen. Barbara Boxer (D-CA) dismissed Climategates revelations as irrelevant and continued to push her expensive cap-and-trade proposal (potential cost: trillions of dollars; potential climate impact according to its own proponents: a few hundredths of a degree). Internationally, last month's U.N. climate conference in Copenhagen ignored it. The delegates didn't skip a beat in pursuing a multi-trillion-dollar transfer of wealth from developed to undeveloped countries. Could it be that climate-change politics is more a

"The present national identity card system is outdated, and does not create interconnectivity and has many security issues. Therefore, the Government is planning to introduce an electronic smart card system to replace it from this year, Defence Secretary Gotabhaya Rajapaksa said. "This new smart card system will create connectivity," the Defence Secretary said at the Tech Colloquium Conference on the theme 'The Role of IT in Nation Building' in Colombo on Monday. He said with the introduction of the new smart card system it could be used as an identity card as well as a multi-purpose card for other purposes. This will enable to prevent any security problems like duplication. This will be an advantage for security concerns to do their investigation and surveillance activities without any hazard, he said. Rajapaksa said developed countries use more advanced surveillance systems than Sri Lanka by using new technology and without using physical presence such as Police and Army personnel. Therefore, this can create some inconvenience to the public to a larger extent, he said. The Defence Secretary said developed countries used advanced security and surveillance systems than Sri Lanka without heavy police and military presence. Therefore electronic surveillance systems are linked to control rooms and these control rooms could dispatch security and military personnel to the relevant position. He said they are now in the process of introducing ICT and new technology for surveillance systems like in developed countries. ICT could also bring an economic revival after defeating three decades of ethnic crisis and achieving true victory, he said. "However, Sri Lanka is still not being developed to that level as we are heavily depending on physical systems, which inconvenience the public. The use of high and advanced technology and IT have brought a lot of achievements during the recent past and it almost did a revolutionary change in the war theater to suppress t

"BRUSSELS - Stunned by having been sidelined in the endgame of the Copenhagen world climate summit meeting, the European Union is debating how to regain influence in the fight against global warming. Should the E.U., the world's largest trading bloc and economic area, respond to the policy setback and the diplomatic humiliation of the bare-minimum Copenhagen accord by playing Mr. Nice, Mr. Nasty, Mr. Persistent or Mr. Pragmatic? The first two options - setting a more ambitious example to others, or threatening climate laggards with carbon tariffs - are tempting gestures, and each has its supporters. But when the dust settles, the 27 E.U. governments are likely to stick to their carbon-emissions reduction strategy while becoming more pragmatic about working outside the United Nations framework to achieve progress, experts say. The E.U. went to the U.N. negotiations in Copenhagen last month seeking a legally binding agreement to cut emissions of greenhouse gases, which are blamed for increasingly warming the planet, with precise reduction targets that would have been subject to international monitoring and enforcement. Despite warning signs that their goals were unrealistic, the Europeans hoped to convert the rest of the world to their own model of supranational governance."

"LONDON (Reuters) - China and India sharply raised defence spending in 2009 despite the economic crisis but most European NATO members face a squeeze on defence budgets as they rein in gaping deficits, a report said on Wednesday. The impact of the global financial crisis on defence and security spending varied across regions and countries, the International Institute for Strategic Studies thinktank said in its annual report "The Military Balance". U.S. defence spending almost doubled under former President George W. Bush but President Barack Obama had signalled that the need to tackle a big budget deficit would require "a dramatic reprioritisation within defence spending," it said. Obama asked Congress this week to approve a record $708 billion in defence spending for fiscal 2011 -- including a 3.4 percent increase in the Pentagon's base budget -- but said he would continue his drive to eliminate wasteful programmes. A sharp recession had led the Russian government effectively to abandon a comprehensive military re-equipment plan due to run from 2007-15 and to replace it with a new 10-year plan starting in 2011, the report said. "In contrast to developments in advanced economies, both India and China have maintained their recent trend of double-digit increases in defence spending," it said. India boosted defence spending by 21 percent in 2009 after the 2008 Mumbai attacks killed 166 people, it said."

"BEIJING (Reuters) - "Ride on a tiger and it's hard to climb down," goes a Chinese saying that is proving apt for Beijing's quarrels with Washington this year, when swollen ambitions at home are driving China on a harder tack abroad. China | COP15 China's outrage over U.S. arms sales to Taiwan and President Barack Obama's planned meeting with the Dalai Lama has shown that, in the wake of the global financial crisis, Beijing is growing pushier in public. In past decades, a poorer, more cautious China greeted U.S. weapons sales to the disputed island with angry words and little else. Not now, as China enters the Year of the Tiger in its traditional lunar calendar cycle of talismanic animals. The Obama administration last week announced plans to ship $6.4 billion of missiles, helicopters and weapons control systems to the self-ruled island Beijing calls its own. China threatened to downgrade cooperation with Washington and for the first time sanction companies involved in such sales. Beijing this week also condemned Obama's plan to meet the Dalai Lama, the exiled Tibetan leader reviled by China. China's loud ire adds to signs the country is becoming surer about throwing around its political weight, growing along with an economy soon likely to whir past Japan's as the world's second biggest, though it will still trail far behind the United States. Behind this assertiveness are domestic pressures likely to make it harder work for China's leaders to cool disputes with Washington and other Western capitals. "There is this paradox of increasing confidence externally and lack of confidence domestically," said Susan Shirk, a professor specializing in Chinese foreign policy at the University of California, San Diego. "There's also what I consider a serious misperception of the country's economic strength and how that translates in power.""

"WASHINGTON - For the past year, China has struck an increasingly muscular position with the United States, berating American officials for the global economic crisis, stage-managing President Obama's visit to China last November, refusing to back a tougher climate change agreement in Copenhagen and standing fast against American demands for tough new Security Council sanctions against Iran. Now, the Obama administration has started to push back. In announcing an arms sales package to Taiwan worth $6 billion on Friday, the United States leveled a direct strike at the heart of the most sensitive diplomatic issue that has existed between the two countries since America affirmed the one-China policy in 1972. The arms package was doubly infuriating to Beijing, coming so soon after President Bush announced a similar arms package to Taiwan in 2008, and right as Beijing and Taipei are in the middle of a détente of sorts in their own relations. China's immediate, and outraged, reaction-canceling some military-to-military exchanges and announcing punitive sanctions against American companies - demonstrates, China experts said, that Beijing is feeling a little burned, particularly because the Taiwan arms announcement came on the same day that Secretary of State Hillary Rodham Clinton publicly berated China for not taking a stronger position on holding Iran accountable for its nuclear program."

Federal regulators seized Charter Bank in New Mexico this week as its capitalization fell below requirements, making it the latest of scores of banks to have failed in the economic crisis. However, the Albuquerque Journal reports that Charter faced a very low default rate on residential loans and no commercial failures, either - until the Office of Thrift Supervision, its regulator, demanded that Charter increase its declared risk fivefold (hat tip HA reader Super5): Federal authorities on Friday closed Charter Bank, a closely held, family-run financial institution known for its financing of low-income housing in New Mexico and for the philanthropy of its owners. … Last fall, Office of Thrift Supervision examiners, responding to the national collapse of real estate development, ordered Charter to increase its allowance for loan losses from $10.8 million to $55.4 million, even though Charter had no delinquent commercial construction loans and only [0].34 percent of the loans in its commercial real estate portfolio were behind on their payments. That order reduced the level of capital Charter had on its books. Last Wednesday, OTS ordered Charter to find new capital as a buffer against insolvency or face closure. Charter had hoped to find a buyer, but none appeared. The owners' stake in the company was wiped out by the forced closure. How involved were they in low-income lending? The head of New Mexico's MFA makes it clear: Charter became a major real estate lender and was especially active in underwriting and servicing mortgages for low-income housing. It worked closely with the Mortgage Finance Authority, which was established by the State Legislature to help finance low-income housing construction. According to MFA executive director Jay Czar, Charter services about 95 percent of the mortgages issued through the agency. "They are just class bankers," Czar said. "These are guys who quite frankly really look out for the s

"As Barack Obama enters his second year in office amid an enduring economic downturn, voters are less optimistic about his ability to succeed and no longer clearly favor keeping the Democrats in control of Congress, according to the new Wall Street Journal/NBC News poll. A surprising win by Republican Scott Brown in Massachusetts has the Democratic Senate majority. The News Hub parses the implications for the Obama administration's agenda. The trends point to an increasingly difficult political climate for President Obama as he hopes to push his domestic agenda beyond health care this year and preserve his party's majorities in the House and Senate. The severity of that climate, in fact, was promptly underscored by Democrats' surprising loss of a Senate seat in Massachusetts Tuesday. The seat of the late Edward Kennedy went to a conservative Republican, Scott Brown, in one of the nation's bluest states. That may not be an anomaly. Nationally, the new survey finds, voters now are evenly split over which party they hope will run Capitol Hill after the November elections-the first time Democrats haven't had the edge on that question since December 2003."

"WASHINGTON -- President Obama, determined to show he understands middle-class struggles, is offering new initiatives meant to help people pay bills and save for retirement. Obama was ready to announce the new steps Monday in a partial preview of his State of the Union address. The proposals to be unveiled by Obama and Vice President Joe Biden at the White House include a doubling of the child care tax credit for families earning under $85,000; a $1.6 billion increase in federal funding for child care programs and a program to cap student loan payments at 10 percent of income above "a basic living allowance." His initiatives also include expanding tax credits to match retirement savings and increasing aid for families taking care of elderly relatives. That program would also require all employers to provide the option of a workplace-based retirement savings plan. Obama is seeking to offer some attractive options to taxpayers, mindful of recent setbacks including the loss of a traditionally Democratic Senate seat in Massachusetts to Republican Scott Brown. Monday's rollout is designed to show sympathy with a frustrated public. "We are fighting every single day to put Americans back to work," Obama said in a statement released by the White House. The proposals are the result of the work of a middle class task force that Biden had headed. The White House says the proposals are aimed at the "sandwich generation" -- Americans struggling to care for both their children and their parents. The proposals fit into the economic message of his prime-time address to the nation on Wednesday, one that is likely to cover financial regulations, energy, education, immigration and a push to change the political tone in Washington. White House advisers see Wednesday's State of the Union speech as a key opportunity for Obama to recalibrate his message to better connect with the public and to reset his presidency after stinging setbacks. Obama has promised a sharper focus o