In the clearest indication yet, a high French government official confirmed last week that an FTT — Financial Transaction Tax — will be implemented by the European Union by the end of 2012, a year earlier than planned. Jean Leonetti, France’s minister for European affairs, said on television that “This is on the program for the next European summit [on January 30th]. Nicolas Sarkozy and Angela Merkel have decided on this and it will be put in place before the end of 2012.” The tax would be levied, initially at least, on every financial transaction taking place by any entity with a connection to the Eurozone, and would be levied at the rate of 0.1 percent on shares of stock and bonds, and 0.01 percent on all derivatives transactions. It is estimated that the FTT would cover about 85 percent of all transactions between financial institutions such as banks, investment firms, insurance companies, pension funds and hedge funds. It is expected to raise, in the beginning, about $70 billion annually to help fund the EU. It’s being touted as punishment for the banks that were allegedly instrumental in causing the economic meltdown, but would have no impact on ordinary citizens or small businesses. According to the European Commission, the FTT “would help to reduce competitive distortions in the single market, discourage risky trading activities [such as high frequency trading and highly leveraged derivatives contracts] and complement regulatory measures aimed at avoiding future crises.”
The announcement from the German Economy Ministry over the weekend confirmed that the long-awaited European recession has officially begun: German factory orders dropped to the lowest level in three years, down nearly five percent in the past month. The ministry also revealed that orders from outside the EU dropped by 10.3 percent. Said Jennifer McKeown, an economist at Capital Economics Ltd. in London, “It’s quite clear that we’re heading into a pretty sharp downturn in Germany, which has been one of the strongest of the euro zone’s economies. Orders are very clearly on a downward trend, as is industrial production itself.” The German economy is the fourth largest in the world, generating nearly $3.5 trillion in goods and services annually. Most of its trade is inside the eurozone, resulting in its position as the second-largest exporter in the world. Despite its strong economy relative to its neighbors, its debt-to-GDP ratio is 142 percent, and it is running an annual deficit of almost nine percent of GDP. It nevertheless retains its AAA rating from the three major credit rating agencies, which is strong enough compared to its eurozone partners to have caused a strange anomaly in the markets: yields on its six-month bonds have gone negative.
As she heads into the last year of her tenure in the state of Washington, Democratic Governor Christine Gregoire has a handful of policy initiatives she would like to push through to pad her political legacy: balance the state’s budget, raise state revenues, create some jobs to help the economy, improve education. And force through a bill legalizing homosexual marriage. After seven years of waffling and “vague answers” on the issue, the Roman Catholic Governor, whose stand on homosexual marriage is at odds with her church's teaching, announced on January 4 that “she not only supports allowing gays and lesbians to marry, but will propose legislation to legalize it in Washington state,” reported the Seattle Times. “Our gay and lesbian families face the same hurdles as heterosexual families — making ends meet, choosing what school to send their kids to, finding someone to grow old with, standing in front of friends and family and making a lifetime commitment,” Gregoire said in announcing her decision to support legalizing homosexual marriage. “For all couples, a state marriage license is very important. It gives them the right to enter into a marriage contract in which their legal interests, and those of their children if any, are protected by well-established civil law.”
After nearly three years in existence, the Tennessee Tea Party disbanded Thursday, according to a message sent to members from the leaders of the group, Robert and Tami Kilmarx. While there yet remain other Tea Party-affiliated groups in the Volunteer State, the end of even one of them may augur a decline in the electoral influence of the Tea Party. This perceived de crescendo of the Tea Party symphony is distinctly different from the loud and animating drumbeat that helped march scores of Tea Party-backed candidates into Washington in 2010. There is no question that the Tea Party wasn’t without failure in the 2010 midterm elections (for instance, the defeats of Sharron Angle and Christine O’Donnell), but Sarah Palin became a household name and legitimate constitutionalists such as Rand Paul now sit in Congress, faithfully protecting the Constitution from enemies, foreign and domestic. The voting trends developing in the presidential election campaign reveal the rapidity of the decline in Tea Party clout, however.
Since the passage of the Affordable Care Act, more than 1,200 companies have been accorded waivers from the healthcare reform law, the Health and Human Services Department (HHS) disclosed Friday, the final day that the agency is required to report the data. "Friday marks the last time HHS will have to update the total number of waivers, putting to rest a recurring political firestorm," writes Sam Baker of The Hill. "The department had been updating its waiver totals every month, prompting monthly attacks from the GOP." Indeed, not only has the number of waivers granted by the department stirred a hailstorm of controversy, but it has also displayed an incontrovertible pattern of crony capitalism, as the law openly leans on the side of labor unions, who just so happen to be strong Democratic supporters who wield tremendous political influence. Ever since the administration strapped a tighter leash on application rules, the unionized sector has remained a prominent beneficiary of ObamaCare waivers.
In what pro-family groups are calling the most important broadcast indecency case in over three decades, the U.S. Supreme Court will hear oral arguments January 10 on the extent to which the Federal Communications Commission (FCC) has the authority to implement rules concerning what is permissible on television, and to fine networks which push the boundaries. If the High Court rules against the tighter controls, as networks hope, nudity, immoral sexual content, and profanity will overwhelm the airwaves, the conservative watchdog groups warn. At issue in the case, reported CNN, is whether or not the FCC “may constitutionally enforce its policies on ‘fleeting expletives’ and scenes of nudity on television programs, both live and scripted.” In the past the FCC has handed out hefty penalties to broadcasters for decency infractions. Among the more notorious examples of on-air indecency which the federal agency has targeted is the now-legendary incident during the 2004 Super Bowl half-time show in which Janet Jackson “accidentally” exposed herself. Also cited are a 2003 episode of the police drama NYPD blue which included a scene with a naked woman; a pair of Fox-network-sponsored Billboard Music Awards shows in 2002 and 2003 during which producers failed to censor profanity uttered by singers Cher and Nicole Richie; and the 2003 televised Golden Globes awards show during which singer Bono dropped the “F-bomb” while giving an acceptance speech.
On Saturday, the Ron Paul campaign issued a statement announcing the naming of several new members of the “Homeschoolers for Ron Paul” coalition. The formation of the group was originally announced in August and since then has been very successful in motivating homeschool advocates to rally to Dr. Paul’s campaign for the White House.
When Barnes & Noble announced its awful earnings per share losses on Thursday, it didn’t help any that its losses were so much worse than the company had projected just a month earlier. In October, Barnes & Noble estimated losses for its fiscal year at between 30 and 70 cents per share. Its latest numbers, revised downward to between $1.10 and $1.40, shook investors who pushed shares to $11, down from $17 in early November. The one critical number which investors look at primarily, called EBITDA — earnings before interest, taxes, depreciation, and amortization — fell from $281 million last year to $163 million this year, a decline of more than 40 percent. It’s easy to say that technological change and market preferences are pushing Barnes & Noble to the edge of bankruptcy, but its position is vastly different from that of its former competitor, Borders, which disappeared in September. What’s more accurate is to say that Barnes & Noble saw the change coming but waited before responding to it. Succeeding brilliantly in the 1990s by providing a vast array of discounted books, games, and accessories, it innovated by opening Starbucks cafes in its stores and providing its customers with comfortable chairs and couches in informal reading areas. In 1998, it anticipated the change from print to digital and purchased NuvoMedia, the maker of the Rocket eBook reader. But in 2003 it exited the digital business, concluding that there was no profit in it.
On January 3, President Barack Obama signed into law legislation imposing sanctions on Belarus. The Belarus Human Rights and Democracy Act of 2011 was passed by Congress in December in response to a litany of alleged human rights abuses on the part of the former Soviet Republic. The text of the act enumerates several causes of the congressional effort to punish Belarus: The Government of Belarus has engaged in a pattern of clear and uncorrected violations of human rights and fundamental freedoms. The Government of Belarus has engaged in a pattern of clear and uncorrected violations of basic principles of democratic governance, including through a series of fundamentally flawed presidential and parliamentary elections undermining the legitimacy of executive and legislative authority in that country. The Government of Belarus has subjected thousands of pro-democratic political activists to harassment, beatings, and jailings, particularly as a result of their attempts to peacefully exercise their right to freedom of assembly and association.
The Obama administration may have revealed classified information related to the killing of Osama bin Laden to a group in Hollywood planning to make a film about the event. On Thursday, Representative Peter King (R-N.Y.) stated that the Department of Defense was initiating an investigation into whether Mark Boal and Kathryn Bigelow (the team behind the 2008 war film The Hurt Locker) were provided “improper access” to unreleased intelligence about the hunt for and assassination of the former head of al-Qaeda by members of the American special operations forces that took place in Pakistan in May of 2011.