Saddam footsteps

Events in Iraq in recent weeks suggest the country is sliding toward irreparable civil conflict, unless its causes are addressed.

In the past couple of weeks of seemingly nonstop violence, the sectarian divide between Sunnis and Shiites in the country has risen to the surface. This is thanks in no small part to the decisions of Prime Minister Nouri al-Maliki, whose policies have raised fears among the Sunni population of him and his leadership.

It appears to not be enough for Maliki and his people that the country has already lost thousands of lives and billions of dollars since the U.S. invasion. They are willing to risk losing more.

At this stage all efforts should be focused on reuniting Iraqi society and bringing the country back into the 21st century. Iraq has suffered not only material damage, but also damage to its social fabric which requires intense effort to repair. That damage was the cost the country paid for the removal of one dictator. Now it is at risk of being subjected to another.

The danger of this is obvious to all, except apparently Maliki himself. Even moderate Shiite leaders have cautioned against his government’s current path because they see it is a recipe for more violence.

Without America’s help, Europe’s defenders can’t get off the ground

The armed forces of France and Britain are woefully ill-prepared for the new age of self-sufficiency  

 It’s been a busy few days for those responsible for looking after our national security interests. On Tuesday, David Cameron hosted a lively discussion at the National Security Council about his decision to support the French military operation to Mali, and yesterday the Government was desperately trying to save the lives of British hostages in Algeria.

The two events, of course, are not unrelated. By offering to provide France with two of the RAF’s giant C-17 transporter aircraft, Mr Cameron was committing Britain to support the French military operation to prevent al-Qaeda seizing control of Mali, with all the implications that was likely to have for British interests in the region. So he should hardly be surprised when, just as French forces began deploying to Mali, another al-Qaeda cell retaliated by attacking BP’s In Amenas gas field in neighbouring Algeria, killing one British worker and taking dozens more captive, including a number of Britons.

Mr Cameron no doubt took a number of political factors into consideration when weighing the decision to back the French. At a time when Britain finds itself isolated in Brussels, he probably calculated that, by doing the French a favour, he would strengthen his friendship with François Hollande. The Mali operation also provided an opportunity to demonstrate the importance of the Anglo-French military cooperation accord.

But following yesterday’s disastrous intervention by the Algerian military, in which scores of hostages were killed, as well as most of the kidnappers, when Algerian forces launched their botched rescue mission, Mr Cameron has experienced a painful lesson in the perils of committing Britain to overseas military operations.

Pakistan to free all Afghan Taliban

Pakistan is prepared to release all Afghan Taliban prisoners currently in Pakistani detention, Pakistani foreign secretary says.

Speaking at a news conference in Abu Dhabi on Friday, Jalil Jilani did not discount the release of Mullah Baradar, the group's one-time second-in-command.

"The remaining detainees, we are coordinating, and they will be released subsequently ... The aim is to release all."

Jilani's statement followed a meeting with David Pearce, US special representative to Afghanistan and Pakistan, and Jawed Ludin, Afghan deputy foreign minister.

The meeting took place at the embassy of Afghanistan in the UAE capital.

Speaking to reporters, Luddin said the meeting intended to discuss "security and political dimensions of bilateral relationships" between the three countries.

Luddin said the peace process had gained momentum in recent weeks with the release of some Taliban detainees by Pakistan, preparations by the Afghan Taliban movement to open a political office in Doha, and Afghan President Hamid Karzai's visit to the US.

China's economy posts slowest growth since 1999

China's economy grew at its slowest pace in 13 years in 2012, though a year-end spurt supported by infrastructure spending and a jump in trade signaled the foundation for the stable growth path Beijing says is vital for economic reform may be in sight.

Evidence of a burgeoning recovery in exports, stronger than expected industrial output and retail sales, together with robust fixed asset investment, all indicated that Beijing's pro-growth policy mix has gained sufficient traction to underpin a revival without yet igniting inflationary risks.

Year-on-year growth of 7.9 percent in the fourth quarter beat a consensus forecast of 7.8 percent in a Reuters poll and snapped a streak of seven consecutive quarters of slowdown.

The performance was at the upper end of the 7-8 percent rate economists reckon is needed to deliver on reforms essential to China's long-term development after three decades of red-hot, double-digit growth.

Full year growth of 7.8 percent was also just ahead of the poll's 7.7 percent call and, although the weakest since 1999, comfortably ahead of the government's 7.5 percent target, which just months ago seemed to some economists to be in jeopardy.

"It's kind of like a golden spot - stronger growth, but not strong enough to trigger a lot more inflationary concern. That's perfect for equity markets." said Dariusz Kowalczyk, Asia ex-Japan senior economist and strategist at Credit Agricole CIB in Hong Kong.

Foreigners still trapped in Sahara hostage crisis

More than 20 foreigners were captive or missing inside a desert gas plant on Saturday, nearly two days after the Algerian army launched an assault to free them that saw many hostages killed.

The standoff between the Algerian army and al Qaeda-linked gunmen - one of the biggest international hostage crises in decades - entered its fourth day, having thrust Saharan militancy to the top of the global agenda.

The number and fate of victims has yet to be confirmed, with the Algerian government keeping officials from Western countries far from the site where their countrymen were in peril.

Reports put the number of hostages killed at between 12 to 30, with possibly dozens of foreigners still unaccounted for - among them Norwegians, Japanese, Britons, Americans and others.

By nightfall on Friday, the Algerian military was holding the vast residential barracks at the In Amenas gas processing plant, while gunmen were holed up in the industrial plant itself with an undisclosed number of hostages.

Scores of Westerners and hundreds of Algerian workers were inside the heavily fortified compound when it was seized before dawn on Wednesday by Islamist fighters who said they wanted a halt to a French military operation in neighboring Mali.

Hundreds escaped on Thursday when the army launched an operation, but many hostages were killed in the assault. Algerian forces destroyed four trucks holding hostages, according to the family of a Northern Irish engineer who escaped from a fifth truck and survived.

Leaders of Britain, Japan and other countries have expressed frustration that the assault was ordered without consultation and officials have grumbled at the lack of information. Many countries also withheld details about their missing citizens to avoid releasing information that might aid the captors.

An Algerian security source said 30 hostages, including at least seven Westerners, had been killed during Thursday's assault, along with at least 18 of their captors. Eight of the dead hostages were Algerian, with the nationalities of the rest of the dead still unclear, he said.

Algeria's state news agency APS put the total number of dead hostages at 12, including both foreigners and locals.

Northern Irish protests peaceful as "flag" riots subside

Protests in Northern Ireland passed off peacefully for the first Friday night this year after almost six weeks of rioting by pro-British loyalists.

The loyalists have held nightly demonstrations since pro-Irish nationalist councillors voted last month to end a century-old tradition of flying the British union flag every day over Belfast City Hall.

The flag's removal unearthed deep discontent among loyalists, who complain of feeling left behind by political changes since the 1998 Good Friday Agreement brought an uneasy end to three decades of sectarian conflict that cost some 3,600 lives.

Some protesters turned out in the snow on Friday, but for the fourth consecutive night there was no outbreak of violence. More protests are planned this weekend, including two afternoon rallies outside the city hall in central Belfast.

Fighting broke out on Saturday as mainly Protestant loyalist protesters passed a Catholic nationalist area on their way home from a rally in the city centre.

Venezuelan VP active in Chavez's absence

 Venezuela's vice president stepped into the shoes of ailing President Hugo Chavez in a flurry of public events Friday, working to maintain an image of government continuity after more than five weeks of unprecedented silence from the normally garrulous president.

Vice President Nicolas Maduro and other Cabinet ministers have striven to assure a nervous public that Chavez's administration is firmly in charge even as the opposition challenges its legitimacy. Chavez has been out of sight in Cuba since undergoing cancer surgery on Dec. 11.

Among three televised events held nationwide on Friday, Maduro helped opened a school in Chavez's home state of Barinas alongside the president's elder brother, Adan, who is the state's governor.

"We're all Chavez. We have to feel that way," Maduro said during the school visit. "We all love Chavez from our hearts."

The vice president, whom Chavez designated last month as his chosen successor, also visited an agricultural training center in Lara state, where he insisted on the importance of "socialist efficiency." He then spoke to National Guard troops in western Zulia state, blaming materialistic values for exacerbating crime. A day earlier on Thursday, Maduro presided over the inauguration of a housing project in Caracas.

Oil Minister Rafael Ramirez gave an update on the government's efforts to build new public housing for the poor, saying more than 400,000 homes are currently under construction nationwide.

"All the programs of the revolution continue and will continue," Ramirez told reporters Friday. "The revolutionary government hasn't stopped, not one minute."

Opposition leaders have said the government violated the constitution by indefinitely postponing Chavez's swearing-in past Jan. 10, a stance that has been dismissed in a ruling by the Supreme Court.

Goldman Sachs Says Oil Price Could Reach $150

The price of oil could reach as much as $150 per barrel this summer, Goldman Sachs chief commodities strategist Jeff Currie said Thursday.

At this year's global strategy conference in Frankfurt, Mr. Currie that he thinks it possible the price may reach $150 a barrel for Brent oil.

He said he wouldn't be surprised "if we woke up in summer and oil cost $150" per barrel.

In December, Goldman's official forecast for 2013 was around $100 a barrel. Brent oil to be delivered in February at present costs $110, while WTI costs $94.

Mr. Currie pointed out that despite the boom in U.S. shale gas, the oil price remains high, which he attributed primarily to sanction-related supply disruptions in Iran.

Trying to compensate for this, Saudi Arabia has already increased its oil production to a 30-year high this year.

A List of The Weapons That The French Are Using In Mali

By air and by land, the French military is on the attack in the embattled West African state of Mali. Ten months after the takeover of the country's north by al-Qaida-affiliated Islamic militants, a sudden assault by rebel forces toward the capital of Bamako on Friday provoked a powerful response by France, Mali's former colonial ruler.

French drones scouted targets as warplanes dropped bombs and helicopter gunships launched missiles. Tanker planes supported the aerial armada while rented and borrowed airlifters hauled in troops and armored vehicles to Bamako. On Wednesday French and Malian ground forces headed north from the capital to do battle with the militants.

"The real question is, now what?" said Army Gen. Carter Ham, commander of U.S. Africa Command. The Pentagon is considering adding it own drones and support forces to the French "Operation Serval," but U.S. leaders are understandably reluctant given the tenacity of rebel resistance and the potential for a drawn-out conflict.

Austerity measures and debt crisis still hamper Europe’s economy

A report released on Thursday by several United Nations departments stated that Europe’s debt crisis is continuing to drag down its economy while austerity measures put in place by many European nations have hindered any GDP growth needed to elevate the economy throughout the Eurozone and the European Union.
Furthermore, Europe’s economy shrank in the second and third quarters of 2012, and it is expected that upcoming numbers for the 4th quarter will also show negative GDP growth, indicating that the region has been in what the report calls a “technical recession” in 2012.
2013 and 2014 are expected to have positive growth overall, albeit barely, at 0.5% and 1.4%, respectively.
While all economies throughout the Eurozone have all stagnated and contracted on average, there was and is expected to be more growth in some countries than others. Germany was not in recession in 2013 and is expected to see greater GDP growth in the next two years as compared to the expected average throughout the Eurozone. Conversely, Italy, Cyprus, Greece, Spain, and Portugal are all in recession and may continue in recession throughout 2013.
EU nations Ireland and United Kingdom avoided a much worse recession in 2012 primarily due to increased revenue from the London 2012 Olympic Games; however, GDP still declined slightly over 2012.
In addition, unemployment varied greatly, but followed the same trend as GDP growth. Average unemployment was 11.3% in September 2012, though in Spain and Greece unemployment remained high, above 25%, while in Austria, Germany, Luxembourg and the Netherlands unemployment was around 5%.