Economies in the Eurozone, the group of 16 countries that use the euro, shrank by 1.5 per cent in the last quarter of 2008.
This is the region's third quarterly contraction in a row and represents the Eurozone's sharpest slump since the euro was created in 1999.
Newcomers to the EU also recorded sharp contractions, with Hungary entering recession, and the Czech and Estonian economies recording a drop in growth.
Germany's economy was the most severely hit in the Eurozone, with GDP shrinking 2.1 per cent, the biggest quarter-on-quarter reduction since 1990.
In France, a 1.2 per cent quarterly contraction was recorded, and in Italy the economy shrank by 1.8 per cent, pushing it into its deepest recession since 1980.
The gloomy economic news poured in as G7 finance ministers met in Rome to discuss the and demonstrators protested against the Italian government's handling of the economy.
Further rate cuts?
For the EU as a whole, including 12 other countries that were not using the euro at the end of 2008, output also slumped by 1.5 per cent on a quarterly basis, following a 0.2 per cent decline in the third quarter.
"At the heart of this is the decline in manufacturing exports... together with the undeniable fact this is a global recession, few nations are buying"
Howard Wheeldon, senior strategist, BGC Partners
According to Eurostat, only Greece, Cyprus and Slovakia recorded quarterly increases.
Analysts said waning trade volumes were to blame for the drop in Eurozone output, along with a relatively strong euro.
"At the heart of this is the decline in manufacturing exports that can perhaps predominantly be blamed on the uncompetitive euro together with the undeniable fact that as this is a global recession, few nations are buying," Howard Wheeldon, a senior strategist at brokerage firm BGC Partners, said.
Aurelio Maccario, chief Eurozone economist for the Milan-based UniCredit Group, said the GDP performance could mean further rate cuts from the European Central Bank.
He said the group expected a 50 basis points cut from the current two per cent rate.
Wednesday, February 18, 2009
California jobs under threat
Thousands of government workers in the US state of California may lose their jobs after politicians failed to approve a $40bn budget.
The biggest US state and the eighth largest economy in the world is facing financial collapse as unemployment and declining consumer spending eats into the state's tax revenue, leaving it without sufficient cash to pay its bills.
The state controller predicts California will run out of cash by the end of February if politicians do not solve the budget crisis.
"We are dealing with a catastrophe of unbelievable proportions," Alan Lowenthal, a state senator, told the Associated Press.
Stalled budget
Arnold Schwarzenegger, the governor, and Democratic legislators are trying to enact deep cuts and $14.4bn in tax increases to cover the state's spending until June 2010.
But marathon sessions and backroom deals to try to pass the budget have yielded no results, with Democrats in need of one more Republican vote to push the bill through the senate.
On Tuesday, the Schwarzenegger administration began informing up to 20,000 workers that they may lose their jobs in a move to trim the government payroll, but the process can take up to six months.
At the same time, the finance department ordered state agencies to shut down 276 infrastructure projects starting on Thursday unless the state can find private, local or federal money to continue the work.
The shutting down of the projects could affect 92,000 construction workers.
The biggest US state and the eighth largest economy in the world is facing financial collapse as unemployment and declining consumer spending eats into the state's tax revenue, leaving it without sufficient cash to pay its bills.
The state controller predicts California will run out of cash by the end of February if politicians do not solve the budget crisis.
"We are dealing with a catastrophe of unbelievable proportions," Alan Lowenthal, a state senator, told the Associated Press.
Stalled budget
Arnold Schwarzenegger, the governor, and Democratic legislators are trying to enact deep cuts and $14.4bn in tax increases to cover the state's spending until June 2010.
But marathon sessions and backroom deals to try to pass the budget have yielded no results, with Democrats in need of one more Republican vote to push the bill through the senate.
On Tuesday, the Schwarzenegger administration began informing up to 20,000 workers that they may lose their jobs in a move to trim the government payroll, but the process can take up to six months.
At the same time, the finance department ordered state agencies to shut down 276 infrastructure projects starting on Thursday unless the state can find private, local or federal money to continue the work.
The shutting down of the projects could affect 92,000 construction workers.
Saudi woman becomes deputy minister
Saudi Arabia has named a woman as deputy minister for education - the most senior role ever held by a female in the kingdom.
Norah al-Faiz, currently an official at the Saudi Institute for Public Administration, was named as the deputy minister responsible for women's education as part of a reshuffle of the cabinet, military and judiciary on Saturday.
King Abdullah also ordered the replacement of the chief of the Supreme Council of Justice, Saleh al-Lihedan, who last year issued an edict saying it was permissible to kill the owners of satellite television channels deemed to show "immoral" content.
The head of the commission is the kingdom's second-most influential cleric.
Sheikh Abdul Aziz al-Humain was appointed as the new head of the Commission for the Promotion of Virtue and the Prevention of Vice which controls the religious police, replacing Sheikh Ibrahim al-Ghaith.
The police have wide powers to search for alcohol, drugs and prostitution, ensure shops are closed during prayer times and maintain the system of sexual segregation in Saudi society.
'Turning point'
The reshuffle, King Abdullah's first since he took power following the the death of his half-brother in 2005, also saw new education, justice and information ministers appointed.
"This is a turning point. It is the biggest change that happened in this country in 20 years," Mohammad al-Zulfa, a member of Saudi Arabia's Shura council, told the AFP news agency.
"It is a new start for King Abdullah. People are expecting changes," he said. "These are new faces who can bring change."
The monarch also appointed Abdul-Aziz Khoja, who was previously ambassador to Lebanon, as information minister, replacing Iyad bin Amin Madani, state-run al-Ekhbariya television reported.
Clerics had often criticised Madani for allowing the local press to take greater liberty in challenging the establishment.
Norah al-Faiz, currently an official at the Saudi Institute for Public Administration, was named as the deputy minister responsible for women's education as part of a reshuffle of the cabinet, military and judiciary on Saturday.
King Abdullah also ordered the replacement of the chief of the Supreme Council of Justice, Saleh al-Lihedan, who last year issued an edict saying it was permissible to kill the owners of satellite television channels deemed to show "immoral" content.
The head of the commission is the kingdom's second-most influential cleric.
Sheikh Abdul Aziz al-Humain was appointed as the new head of the Commission for the Promotion of Virtue and the Prevention of Vice which controls the religious police, replacing Sheikh Ibrahim al-Ghaith.
The police have wide powers to search for alcohol, drugs and prostitution, ensure shops are closed during prayer times and maintain the system of sexual segregation in Saudi society.
'Turning point'
The reshuffle, King Abdullah's first since he took power following the the death of his half-brother in 2005, also saw new education, justice and information ministers appointed.
"This is a turning point. It is the biggest change that happened in this country in 20 years," Mohammad al-Zulfa, a member of Saudi Arabia's Shura council, told the AFP news agency.
"It is a new start for King Abdullah. People are expecting changes," he said. "These are new faces who can bring change."
The monarch also appointed Abdul-Aziz Khoja, who was previously ambassador to Lebanon, as information minister, replacing Iyad bin Amin Madani, state-run al-Ekhbariya television reported.
Clerics had often criticised Madani for allowing the local press to take greater liberty in challenging the establishment.
Barack Obama, the US president, has announced a $75bn plan to help millions of US homeowners struggling to pay their mortgages and those at risk of lo
Barack Obama, the US president, has announced a $75bn plan to help millions of US homeowners struggling to pay their mortgages and those at risk of losing their homes.
The plan will help as many as five million families restructure or refinance mortgages to avoid foreclosure, the president said on Wednesday in a speech delivered in Phoenix, Arizona.
"The American dream is being tested by a home mortgage crisis that not only threatens the stability of our economy, but also the stability of families and neighbourhoods," Obama said.
"All of us are paying a price for this home mortgage crisis. And all of us will pay an even steeper price if we allow this crisis to deepen."
The housing initiative is designed to help borrowers refinance, and provides incentive payments to mortgage lenders, specifically addressing homeowners with negative equities - those paying mortgages at a higher rate than their homes are actually worth.
Quick impact
Timothy Geithner, the US treasury secretary, told reporters he expected the plan to work quickly to help the housing market, and that it would bolster efforts to restore the financial system to good health.
The stimulus plan
Plan is worth $787bn
$287bn set aside for tax breaks
$500bn allocated for spending, of which:
$120bn will go towards roads, transport and broadband infrastructure
$60bn for healthcare and medical research
$6bn for renewable energy loans
John Terret, Al Jazeera's correspondent in New York, said: "The key is that this is one of four strands that the Obama administration is trying to push through to get the economy moving again.
"One is the giant stimulus package, then the homes package today, the auto-industry bailout and the bank bailout which is currently being worked on."
An additional $100bn could be made available to homeowners by Fannie Mae and Freddie Mac - two housing companies bailed-out by the government at the height of the economic downturn last year - to absorb more home loans and spur fresh lending.
Washington may also directly inject a further $100bn into each of the mortgage giants, protecting them against losses as they expand their massive reach into the housing market.
Between four and five million Americans could benefit from the additional $200bn.
The US is experiencing its worst economic crisis in decades, with tight credit, ailing banks and its highest unemployment rate in 16 years.
Slipping industry
As Obama's administration announced details on the housing plan, the US Commerce Department reported that new home construction in the US fell16.8 per cent from December to a record annual rate of 466,000 homes last month.
The figure marks the fourth month in a row that housing construction has set a new low in 50 years of the department's recordkeeping.
Also on Wednesday, the US Federal Reserve revealed that the US economy had slumped further than expected.
In depth
Production from the nation's biggest factories, mines and utilities fell 1.8 per cent last month, after many economists expected a 1.5 per cent decline, the Fed reported on Wednesday.
The report came as US car makers General Motors and Chrysler requested a further $22bn in government loans to save them from bankruptcy.
Obama signed a $787bn American Recovery and Reinvestment Bill into act on Tuesday, saying the package, a mixture of tax cuts and spending for infrastructure projects, would lay the groundwork for "real and lasting change for generations to come".
Roughly one-third of the stimulus funds will be spent on tax cuts, totalling $286bn, in an effort to boost consumer spending, a vital engine of the world's largest economy.
Despite the plan, financial analysts say the US economy will remain feeble throughout 2009. Some economists predict that the US budget deficit for 2009 will hit $1.6 trillion, including the stimulus spending - about three times last year's shortfall.
The plan will help as many as five million families restructure or refinance mortgages to avoid foreclosure, the president said on Wednesday in a speech delivered in Phoenix, Arizona.
"The American dream is being tested by a home mortgage crisis that not only threatens the stability of our economy, but also the stability of families and neighbourhoods," Obama said.
"All of us are paying a price for this home mortgage crisis. And all of us will pay an even steeper price if we allow this crisis to deepen."
The housing initiative is designed to help borrowers refinance, and provides incentive payments to mortgage lenders, specifically addressing homeowners with negative equities - those paying mortgages at a higher rate than their homes are actually worth.
Quick impact
Timothy Geithner, the US treasury secretary, told reporters he expected the plan to work quickly to help the housing market, and that it would bolster efforts to restore the financial system to good health.
The stimulus plan
Plan is worth $787bn
$287bn set aside for tax breaks
$500bn allocated for spending, of which:
$120bn will go towards roads, transport and broadband infrastructure
$60bn for healthcare and medical research
$6bn for renewable energy loans
John Terret, Al Jazeera's correspondent in New York, said: "The key is that this is one of four strands that the Obama administration is trying to push through to get the economy moving again.
"One is the giant stimulus package, then the homes package today, the auto-industry bailout and the bank bailout which is currently being worked on."
An additional $100bn could be made available to homeowners by Fannie Mae and Freddie Mac - two housing companies bailed-out by the government at the height of the economic downturn last year - to absorb more home loans and spur fresh lending.
Washington may also directly inject a further $100bn into each of the mortgage giants, protecting them against losses as they expand their massive reach into the housing market.
Between four and five million Americans could benefit from the additional $200bn.
The US is experiencing its worst economic crisis in decades, with tight credit, ailing banks and its highest unemployment rate in 16 years.
Slipping industry
As Obama's administration announced details on the housing plan, the US Commerce Department reported that new home construction in the US fell16.8 per cent from December to a record annual rate of 466,000 homes last month.
The figure marks the fourth month in a row that housing construction has set a new low in 50 years of the department's recordkeeping.
Also on Wednesday, the US Federal Reserve revealed that the US economy had slumped further than expected.
In depth
Production from the nation's biggest factories, mines and utilities fell 1.8 per cent last month, after many economists expected a 1.5 per cent decline, the Fed reported on Wednesday.
The report came as US car makers General Motors and Chrysler requested a further $22bn in government loans to save them from bankruptcy.
Obama signed a $787bn American Recovery and Reinvestment Bill into act on Tuesday, saying the package, a mixture of tax cuts and spending for infrastructure projects, would lay the groundwork for "real and lasting change for generations to come".
Roughly one-third of the stimulus funds will be spent on tax cuts, totalling $286bn, in an effort to boost consumer spending, a vital engine of the world's largest economy.
Despite the plan, financial analysts say the US economy will remain feeble throughout 2009. Some economists predict that the US budget deficit for 2009 will hit $1.6 trillion, including the stimulus spending - about three times last year's shortfall.
What Caused The Economic Crisis Of 2008?
I think we can sum up the cause of our current economic crisis in one word — GREED. Over the years, mortgage lenders were happy to lend money to people who couldn’t afford their mortgages. But they did it anyway because there was nothing to lose. These lenders were able to charge higher interest rates and make more money on sub-prime loans. If the borrowers default, they simply seized the house and put it back on the market. On top of that, they were able to pass the risk off to mortgage insurer or package these mortgages as mortgage-backed securities. Easy money!
What Went Wrong With Our Financial System?
The whole thing was one big scheme. Everything was great when houses were selling like hot cakes and their values go up every month. Lenders made it easier to borrow money, and the higher demand drove up house values. Higher house values means that lenders could lend out even bigger mortgages, and it also gave lenders some protection against foreclosures. All of this translates into more money for the lenders, insurers, and investors.
Unfortunately, many borrowers got slammed when their adjustable mortgage finally adjusted. When too many of them couldn’t afford to make their payments, it causes these lenders to suffer from liquidity issue and to sit on more foreclosures than they could sell. Mortgage-backed securities became more risky and worth less causing investment firms like Lehman Brothers to suffer. Moreover, insurers like AIG who insured these bad mortgages also got in trouble.
The scheme worked well, but it reverses course and is now coming back to hurt everyone with a vengeance.
The Case Of My Greedy Real Estate Agent
My own experience with these greedy lenders and real estate agents happened about two years ago. My wife and I were thinking about upgrading our home to something slightly bigger, and in a better neighborhood. As we go through the process, we resolved not to do it because it would double our monthly mortgage payment and add another 20 years to our mortgage term.
When I told the real estate agent I couldn’t afford the monthly payment, he said I could go for a 40 years mortgage with 5% down payment, and apply for more than what I needed so that I’ll have an emergency fund. Basically, he advised me to decimate my cash flow and savings so that I can pay mortgage into my 70s. And while I am at it, I should pay private mortgage insurance (PMI) for a couple of years. Now, that’s irresponsible and greedy.
The sad thing about the scenario above is that I am certain there are borrowers who didn’t know any better and went along with a similar plan.
The Bailout And Who Should Pay
I don’t like the idea of government bailout, because the government is using my money to help out greedy bankers. Unfortunately, it may be the only option we have right now, but I hope these greedy lenders won’t get away scot-free. Somebody made a lot of money leading up to this crisis and they should pay for it — at least the government should make them.
In my opinion, the government should force conversion of bad mortgages into 30 years fixed rate mortgages. The interest rate on these converted mortgages could be higher than normal. This way it’s more affordable to more borrowers resulting in a lower default rate. Yes the lenders will make less money, but in my opinion, they already made too much. By the way, the borrowers aren’t completely innocent either, that’s why they should pay a little more as well.
Since it was fine from them to play with our economy and our lives, I think this is the least that they could do to take part in the recovery effort. Why should my tax dollars go toward helping these greedy bankers who already made billions out of the scheme? I am sure no one will come to my rescue if I my greed got me in trouble.
What Went Wrong With Our Financial System?
The whole thing was one big scheme. Everything was great when houses were selling like hot cakes and their values go up every month. Lenders made it easier to borrow money, and the higher demand drove up house values. Higher house values means that lenders could lend out even bigger mortgages, and it also gave lenders some protection against foreclosures. All of this translates into more money for the lenders, insurers, and investors.
Unfortunately, many borrowers got slammed when their adjustable mortgage finally adjusted. When too many of them couldn’t afford to make their payments, it causes these lenders to suffer from liquidity issue and to sit on more foreclosures than they could sell. Mortgage-backed securities became more risky and worth less causing investment firms like Lehman Brothers to suffer. Moreover, insurers like AIG who insured these bad mortgages also got in trouble.
The scheme worked well, but it reverses course and is now coming back to hurt everyone with a vengeance.
The Case Of My Greedy Real Estate Agent
My own experience with these greedy lenders and real estate agents happened about two years ago. My wife and I were thinking about upgrading our home to something slightly bigger, and in a better neighborhood. As we go through the process, we resolved not to do it because it would double our monthly mortgage payment and add another 20 years to our mortgage term.
When I told the real estate agent I couldn’t afford the monthly payment, he said I could go for a 40 years mortgage with 5% down payment, and apply for more than what I needed so that I’ll have an emergency fund. Basically, he advised me to decimate my cash flow and savings so that I can pay mortgage into my 70s. And while I am at it, I should pay private mortgage insurance (PMI) for a couple of years. Now, that’s irresponsible and greedy.
The sad thing about the scenario above is that I am certain there are borrowers who didn’t know any better and went along with a similar plan.
The Bailout And Who Should Pay
I don’t like the idea of government bailout, because the government is using my money to help out greedy bankers. Unfortunately, it may be the only option we have right now, but I hope these greedy lenders won’t get away scot-free. Somebody made a lot of money leading up to this crisis and they should pay for it — at least the government should make them.
In my opinion, the government should force conversion of bad mortgages into 30 years fixed rate mortgages. The interest rate on these converted mortgages could be higher than normal. This way it’s more affordable to more borrowers resulting in a lower default rate. Yes the lenders will make less money, but in my opinion, they already made too much. By the way, the borrowers aren’t completely innocent either, that’s why they should pay a little more as well.
Since it was fine from them to play with our economy and our lives, I think this is the least that they could do to take part in the recovery effort. Why should my tax dollars go toward helping these greedy bankers who already made billions out of the scheme? I am sure no one will come to my rescue if I my greed got me in trouble.
Israeli attack on gaza
Israeli Terror War & Cold Rhetoric
It seems the Jewish terror war in Palestine is partly over and Israel must be charting out it future strategies as per the rules of fascism. It may not be very clear who actually won this conflict, if such a concept means anything in Gaza, but it's pretty clear who lost and that was the civilian population of Gaza. Sources say about 3000 Palestinians were killed, most of them civilians and nearly a third of them children, and 5,500 injured during the conflict. 4,100 homes were totally destroyed and 17,000 others damaged during the conflict. About 1,500 factories and workshops, 20 mosques, 31 security installations and 10 water or sewage pipes were also damaged A total of 50 UN facilities and 21 medical facilities were damaged, apart from deaths of thousands of defenseless Palestinians, schools, medical care units, mosques. When asked to estimate the costs, Holmes said he could not give exact figures until UN teams in Gaza had completed their assessments, but the likely figure was hundreds of millions, and the overall reconstruction costs would run into billions. The bureau estimated that the overall physical damage so far amounted to about $1.9bn (£1.4bn), including about $200m (£140m) of damage to infrastructure.
Ceasefires declared by Palestinian militant groups and Israel are holding, and Israeli troops are expected to complete their pull-out later. Rebuilding the Gaza Strip after Israel's three-week offensive will cost billions of dollars, the UN has warned. At a news conference in New York, UN Under-Secretary General for Humanitarian Affairs John Holmes said hundreds of millions of dollars of aid would be needed immediately to help Gaza's 1.4 million people in the aftermath of the offensive, which ended on 17 Jan Saturday. Tens of thousands of Palestinians have been left homeless and 400,000 people still have no running water. 100,000 people had been displaced some neighborhoods had been almost totally destroyed and many homes reduced to rubble. Sewage was flowing in the streets, there were huge medical and food needs, and unexploded ordnance was posing a big problem.
The weapons used by the Israeli military had caused "horrific" injuries to children. "These are not scratches or bullet wounds; these are kids who are hit by shrapnel in most instances. Israel called a ceasefire on Saturday, saying it had met its war aims. Palestinians are meanwhile continuing to search through the rubble of their homes to try to find the bodies of those killed in the conflict. Many are angry and feel that the world did not do enough when it mattered to stop the violence.
Islamic/Arab World: A Sinking ship?
Arab nations, including the African Egypt, responsible for aggravating the Israeli fascism in Gaza by keeping almost silent without supporting the Hamas government with the needy equipment and aids, now play blame politics and conveniently placed the whole blame on Hamas. Egyptian President Hosni Mubarak said Hamas had invited the Israeli attacks on the Gaza Strip by refusing to extend a truce that expired in December. Mubarak warned that regional powers were trying to exploit Arab differences and reiterated that a peaceful settlement remained the only option. "It should be taken seriously by Israel and international big powers... Middle East peace is an urgent necessity," he said.
Already the anti-Islamic world has done enough damage to Islam and Muslims the world over. Intermittent wars being engaged in by Israel have harmed the economic and socio-political interests of Arab world.
Arab world has taken the Israeli genocides in Gaza not as a case of historical fascism, but as a routine and unimportant matter of invasion and destruction by an enemy in the neighborhood and that could be resolved by taking enough cash from Israel for the number of Muslim dead bodies as per their records. Egypt and Saudi Arabia shunned a summit hosted by Qatar last week which called for freezing ties with Israel. Syria pronounced the 2002 Arab peace initiative as dead. Cairo has face particularly angry criticism that it co-operates with Israel's blockade of Gaza.
The Saudi king, Abdullah bin Abdul Aziz said his country would donate $1bn to finance reconstruction in the heavily-bombed Gaza Strip. The sum is about half of what Arab officials have said they hope to raise. "I call on you in the name of God... that we rise above our difference and defeat the expectations of our enemies and we take an honorable stand," King Abdullah said at the opening session.
Arabs already talking in terms of “reconciliation efforts”, May be on the promises made by USA-Israeli combine about the possible compensations to Palestine. Palestinian Authority President Mahmoud Abbas - whose Fatah faction was ousted by Hamas from control of Gaza in 2007 - called for immediate reconciliation talks. "What is required today... is to form a national unity government which will then conduct presidential and legislative elections simultaneously," he said.
Arab divisions over the Gaza crisis have re-emerged at a summit in Kuwait. The two-day summit had been billed as a chance for Arab leaders to sidestep political divisions and focus on economic matters. Subjects for discussion included a pan-Arab common market and customs union, and ambitious joint infrastructure projects. Correspondents say several pro-Western Arab leaders have faced strong criticism from their citizens, outraged both by Israel's attacks on Gaza and their governments' inability to end the violence.
Arab League Secretary General Amr Moussa told Arab leaders it was time for the body he chairs to demonstrate it had a role. "The Arab ship is really sinking and Kuwait's summit... might save it," Moussa said. There had been misunderstandings in Doha and expressed the hope "we can put our hands together... to strengthen the Arab position". Syrian President Bashar al-Assad said Arab leaders should adopt a resolution declaring Israel a terrorist entity, and support Palestinian resistance. Assad said: "We should show our clear support for the Palestinian resistance. I suggest this summit officially call the Zionist entity a terrorist entity."
Reports say the Saudi king hosted a lunch for five other leaders on the summit sidelines to try to heal rifts. They included the Qatari and Syrian leaders, among the sternest Arab critics of Israel's military campaign, and Egypt and Jordan, who have long-standing alliances with Israel. Qatar's Prime Minister Sheikh Hamad bin Jasim al-Thani said the Saudi lunch achieved its goals towards reconciliation, but gave no further details.
It seems the Jewish terror war in Palestine is partly over and Israel must be charting out it future strategies as per the rules of fascism. It may not be very clear who actually won this conflict, if such a concept means anything in Gaza, but it's pretty clear who lost and that was the civilian population of Gaza. Sources say about 3000 Palestinians were killed, most of them civilians and nearly a third of them children, and 5,500 injured during the conflict. 4,100 homes were totally destroyed and 17,000 others damaged during the conflict. About 1,500 factories and workshops, 20 mosques, 31 security installations and 10 water or sewage pipes were also damaged A total of 50 UN facilities and 21 medical facilities were damaged, apart from deaths of thousands of defenseless Palestinians, schools, medical care units, mosques. When asked to estimate the costs, Holmes said he could not give exact figures until UN teams in Gaza had completed their assessments, but the likely figure was hundreds of millions, and the overall reconstruction costs would run into billions. The bureau estimated that the overall physical damage so far amounted to about $1.9bn (£1.4bn), including about $200m (£140m) of damage to infrastructure.
Ceasefires declared by Palestinian militant groups and Israel are holding, and Israeli troops are expected to complete their pull-out later. Rebuilding the Gaza Strip after Israel's three-week offensive will cost billions of dollars, the UN has warned. At a news conference in New York, UN Under-Secretary General for Humanitarian Affairs John Holmes said hundreds of millions of dollars of aid would be needed immediately to help Gaza's 1.4 million people in the aftermath of the offensive, which ended on 17 Jan Saturday. Tens of thousands of Palestinians have been left homeless and 400,000 people still have no running water. 100,000 people had been displaced some neighborhoods had been almost totally destroyed and many homes reduced to rubble. Sewage was flowing in the streets, there were huge medical and food needs, and unexploded ordnance was posing a big problem.
The weapons used by the Israeli military had caused "horrific" injuries to children. "These are not scratches or bullet wounds; these are kids who are hit by shrapnel in most instances. Israel called a ceasefire on Saturday, saying it had met its war aims. Palestinians are meanwhile continuing to search through the rubble of their homes to try to find the bodies of those killed in the conflict. Many are angry and feel that the world did not do enough when it mattered to stop the violence.
Islamic/Arab World: A Sinking ship?
Arab nations, including the African Egypt, responsible for aggravating the Israeli fascism in Gaza by keeping almost silent without supporting the Hamas government with the needy equipment and aids, now play blame politics and conveniently placed the whole blame on Hamas. Egyptian President Hosni Mubarak said Hamas had invited the Israeli attacks on the Gaza Strip by refusing to extend a truce that expired in December. Mubarak warned that regional powers were trying to exploit Arab differences and reiterated that a peaceful settlement remained the only option. "It should be taken seriously by Israel and international big powers... Middle East peace is an urgent necessity," he said.
Already the anti-Islamic world has done enough damage to Islam and Muslims the world over. Intermittent wars being engaged in by Israel have harmed the economic and socio-political interests of Arab world.
Arab world has taken the Israeli genocides in Gaza not as a case of historical fascism, but as a routine and unimportant matter of invasion and destruction by an enemy in the neighborhood and that could be resolved by taking enough cash from Israel for the number of Muslim dead bodies as per their records. Egypt and Saudi Arabia shunned a summit hosted by Qatar last week which called for freezing ties with Israel. Syria pronounced the 2002 Arab peace initiative as dead. Cairo has face particularly angry criticism that it co-operates with Israel's blockade of Gaza.
The Saudi king, Abdullah bin Abdul Aziz said his country would donate $1bn to finance reconstruction in the heavily-bombed Gaza Strip. The sum is about half of what Arab officials have said they hope to raise. "I call on you in the name of God... that we rise above our difference and defeat the expectations of our enemies and we take an honorable stand," King Abdullah said at the opening session.
Arabs already talking in terms of “reconciliation efforts”, May be on the promises made by USA-Israeli combine about the possible compensations to Palestine. Palestinian Authority President Mahmoud Abbas - whose Fatah faction was ousted by Hamas from control of Gaza in 2007 - called for immediate reconciliation talks. "What is required today... is to form a national unity government which will then conduct presidential and legislative elections simultaneously," he said.
Arab divisions over the Gaza crisis have re-emerged at a summit in Kuwait. The two-day summit had been billed as a chance for Arab leaders to sidestep political divisions and focus on economic matters. Subjects for discussion included a pan-Arab common market and customs union, and ambitious joint infrastructure projects. Correspondents say several pro-Western Arab leaders have faced strong criticism from their citizens, outraged both by Israel's attacks on Gaza and their governments' inability to end the violence.
Arab League Secretary General Amr Moussa told Arab leaders it was time for the body he chairs to demonstrate it had a role. "The Arab ship is really sinking and Kuwait's summit... might save it," Moussa said. There had been misunderstandings in Doha and expressed the hope "we can put our hands together... to strengthen the Arab position". Syrian President Bashar al-Assad said Arab leaders should adopt a resolution declaring Israel a terrorist entity, and support Palestinian resistance. Assad said: "We should show our clear support for the Palestinian resistance. I suggest this summit officially call the Zionist entity a terrorist entity."
Reports say the Saudi king hosted a lunch for five other leaders on the summit sidelines to try to heal rifts. They included the Qatari and Syrian leaders, among the sternest Arab critics of Israel's military campaign, and Egypt and Jordan, who have long-standing alliances with Israel. Qatar's Prime Minister Sheikh Hamad bin Jasim al-Thani said the Saudi lunch achieved its goals towards reconciliation, but gave no further details.
Subscribe to:
Posts (Atom)
Posts
