Europe Summit: David Cameron "overplayed his hand"

The very coalition that had been set up to rehabilitate what is the money-craving Eurozone collapsed last night as British Prime Minister, David Cameron, vetoed the European rescue package. The U.K does not use the Euro, and decided to opt out of the deal. This was not the first time that the British refused to become closer to the European states. An excellent example of this was given back in 1992, when the U.K refused to sign the Maastricht Treaty and as a result, did not become part of the European Union.

British Prime Minister David Cameron at the Europe Summit

It now looks like as if the other 26 members of the Summit will agree to the accord, and while Britain did opt out, Labour and Liberal Democrats warn Britain is now dangerously isolated. It should be noted that Britain has 143 billion pounds in exports to Europe (more than the rest of the world combined). This alone makes the threat evident.

Cameron is blamed for caving into pressure by the right-wing in his party. "What is on offer isn't in Britain's interests, so I didn't agree to it", David Cameron stated at a briefing. However, one source close to the talks said that Cameron had "overplayed his hand".

This crisis did not go unnoticed as Asian markets fell Friday with the news that the talks at the Summit had been shattered.

• Tokyo fell 1.48%
• Hong Kong marked down 2.73%
• Shanghai fell 0.62%
• Seoul went down 1.97%
• and Sydney shed 1.82%

World Markets Soar

Wow - did anyone expect this?

Stock markets soared today as, and unexpectedly I might add, the U.S Federal Reserve and other central banks announced a plan to make it cheaper for banks around the globe to borrow U.S currency. 

The Dow Jones Industrial average jumped approximately 490 points (4.2%).

The S&P 500 rose 51.8 points (4.3%).

The Nasdaq added 104.8 points (4.2%).

Although this seems to have brightened everyone's day, this at best can be described as a short term relapse. Investors are now looking towards the European Summit which is to be held on December 9. This will (hopefully) provide more direction on how leaders plan to deal with the economic situation in both Spain and Italy.

What will the future outlook be? Only time will tell.

The emotions felt at certain stages of the Market. I love this one.

The Italian Crisis

Italian Premier Silvio Berlusconi resigned this pass Saturday after the parliament's lower chamber passed demand reforms - ending his 17-year political era. His recent controversy regarding sex scandals, corruption trials and misuse of political power marred his popularity. This marks the beginning of a transition, and of new hope - from the once scandalous government with its heels in debt to (hopefully) a prosperous and reborn nation. It was seen through the Italian people as they chanted "resign, resign, resign" outside the Prime Minister's office.

From this letdown however, rose a new sense of hope. Mario Monti has now taken command. Graduating with a degree in economics from Yale he was appointed as the EU commissioner for internal market and services in 1994. His second term in the commission (1999-2004), as a BBC article states, earned him the nickname "Super Mario" for the way he took on vested interests. PM Monti is "covinced" the country can overcome its crisis, as he will meet with President Giorgio Napolitano tomorrow to present his new government.

The new Prime Minister of Italy and former EU commissioner, Mario Monti.

Nonetheless, although people remain optimistic - the Italians have their feet tied. Italy is under intense pressure  and a sense of urgency to quickly resolve its crisis. However, this will require more painful reforms as they deal with debt that stands at $2.6 trillion, 120% of their economic output. With the announcement of Monti taking control, the yield on the Italian 10-year bonds fell to 6.48% on Friday, safely under the crisis level of 7% it had reached earlier that week. But, it has now reached that level again today. The level that had forced Greece, Portugal and Ireland to seek EU bailouts.

Over the weekend, the parliament passed a package of austerity measures which aims to balance the budget by 2014, foreseeing 59.8 billion euros in savings.

Rick Perry and the 'Flat Tax'

Rick Perry's campaign seems to be free falling. His speaking skills for one seem to have caught some attention - who didn't chuckle during the September 22nd GOP debate? For those who don't remember, here's a refresher:

Well played Rick, well played indeed. One CNN reporter went so far as to state that Rick Perry should use a script. However, with that behind him and the campaigns progressing, he then came under fire for lacking a plan, and then again for reviving the "Obama birtherism" controversy. 

Now, what seems to be under the shadow of Herman Cain's "9-9-9" plan comes Perry's 'Flat Tax' reform. His reform calls for one tax rate, that is proposed as a replacement for the income tax. This would include exemption based on family size, much like today's deduction. However, no matter how you slice the pie, more than 95% of the highest-income households would pay a lower tax bill. As for the middle-man, it's not as a clear cut as it's proposed. More than half of the households making $20,000 to $75,000 would see a tax increase (assuming the Bush tax cuts expire).

In 1996, Steve Forbes unveiled a relatively pure flat tax, with a frenzy of conservatives supporting the idea, regarding it as being simple and fair. It became the centerpiece of his Republican campaign for presidential nomination. Nonetheless, other Republican candidates quickly exposed its flaws and all - as a flat tax would mean hacking revenues, raising middle-class taxes or both.

Rick Perry's plan has caught the attention of many. It offers the appeal that many would see a cut, and has effectively  divided many of Cain's "9-9-9" supporters. However, nothing regarding a tax plan is ever cut-and-dry, as many question if a tax reform is what the U.S really needs. Whatever the case, Perry has caught the eyes of many, and with a well developed plan and strong footing, his campaign may just take a turn for the better.

The generation that is remaking China

Known as "the Oprah of China", Yang Lan is a well renowned journalist and entrepreneur. Here she outlines the transformation taking place within China and the Chinese society as political and economic prosperity, social media, and social justice begin to take center stage.

This is one very inspiring presentation, as it not only outlines the change taking place in China, but I believe it could serve as an example for other developing nations.

American Jobs Act

Obama went before a captious Congress this Thursday, unveiling his plan to 'jolt' the economy. With the unemployment rate at 9.1 percent, Obama proposed an ambitious package that calls for dramatic cuts in payroll taxes that both taxpayers and business pay to fund the U.S  Social Security pension program. 

"The question is whether: in the face of an on-going national crisis...", Obama said in his proposal, "we can stop the  political circus and actually do something to help the economy." However, with a House of Representatives controlled by bitter Republicans, much opposition lies before Obama and his plans; moreover so, because it is a plan that could possibly help him get re-elected next year.

Unfortunately for the Republicans, "there should be nothing controversial about this piece of legislature - everything in here is the kind of proposal supported by both Democrats and Republicans", stated Obama. "You should pass this bill", encouraged Obama, under a frenzy of applause by Democrats and the silence of the Republicans.

The American Jobs Act is a $447 billion plan, of which approximately $240 billion accounts for the payroll tax cuts. "Everything is paid for", he said. In addition, the plan also includes:

• $105 billion for public works spending (improving school systems, roads and bridges)
• $49 billion to continue unemployment assistance to those who require benefits
• $35 billion for local governments to avoid layoffs of emergency personnel and teachers
• $8 billion to fund a $4,000 tax credit for businesses that hire workers who have been unemployed for more than six months

President Obama is expected to send the American Jobs Act to Congress Monday evening. However, Obama has received much scrutiny since Thursday as many believe the plan will only benefit the economy in the short term. Under the continuing rise of unemployment and the never ending "political circus" (as Obama stated so accurately) that plagues the White House, 80% of the American people believe the economy is heading in the wrong direction. Obama plans to layout another and more broader deficit plan on September 19. In coalescence with his current bill, the two plans will provide an estimated $2 trillion in deficit savings.

Obama's Plan for Jobs

Politicians seem to be more concerned with the upcoming Presidential elections in 2012 rather than staying focused on this economic crisis (which many analysts believe could become another recession). Barack Obama remains as the bleak glimmer of hope, and Americans now look back at that night in Denver during the Democratic presidential nomination - when "the planet began to heal".

The U.S economy is now at a stand still. Most economists predict that, at most, the U.S economy will increase only 2 percent. The high unemployment rate (stuck now at 9.1 percent, after exactly zero net jobs were created in August) is what Obama now plans to tackle head on as the nation lost nearly 2.5 million jobs in the last three years.

He is expected to discuss the new plan to revive the economy with a joint session of Congress this Thursday: a mix of tax credits and targeted spending increases for school renovation and job training amounting to about $300 billion. Obama's hope is for a sensible proposal that even the Republicans could endorse. If rejected by Congress, Obama's aides believe it will shift the political scale in their favour. As a defeated plan they hope it could become a political trap for Republicans - allowing Obama to portray it as sabotage of economic progress.

"The president will present a meaningful, responsible set of ideas to create jobs and grow the economy," a senior White House advisor said. That is precisely what the American people, and much of the world are hoping for as the economic outlook across much of the world is looking dim.

The nation now anxiously waits for Obama, as he is expected to speak Thursday.

Sources: LA Times and Bloomberg

Space - The next frontier for Nuclear Power?

DENVER, Aug. 28, 2011 — The first nuclear power plant being considered for production of electricity for manned or unmanned bases on the Moon, Mars and other planets may really look like it came from outer space, according to a leader of the project who spoke here today at the 242^nd National Meeting & Exposition of the American Chemical Society (ACS).

James E. Werner said that innovative fission technology for surface power applications is far different from the familiar terrestrial nuclear power stations, which sprawl over huge tracts of land and have large structures such as cooling towers.

“People would never recognize the fission power system as a nuclear power reactor,” said Werner. “The reactor itself may be about 1 ½ feet wide by 2 ½ feet high, about the size of a carry-on suitcase. There are no cooling towers. A fission power system is a compact, reliable, safe system that may be critical to the establishment of outposts or habitats on other planets. Fission power technology can be applied on Earth’s Moon, on Mars, or wherever NASA sees the need for continuous power.”

The team is scheduled to build a technology demonstration unit in 2012. This is a cooperative project between the National Aeronautics and Space Administration (NASA) and the U.S. Department of Energy (DOE). Werner leads the DOE’s Idaho National Laboratory involvement in this effort, which includes participation in the reactor design and modeling teams, fuel development and fabrication and development of a small electrical pump for the liquid metal cooled system.

An artist's concept of a fission power system on the moon

Sunlight and fuel cells were the mainstays for generating electricity for space missions in the past, but engineers realized that solar energy has limitations. Solar cells do a great job supplying electricity in near-Earth orbits and for satellite-borne equipment, but nuclear power offers some unique capabilities that could support manned outposts on other planets or moons.

“The biggest difference between solar and nuclear reactors is that nuclear reactors can produce power in any environment,” Werner explained. “Fission power technology doesn’t rely on sunlight, making it able to produce large, steady amounts of power at night or in harsh environments like those found on the Moon or Mars. A fission power system on the Moon could generate 40 kilowatts or more of electric power, approximately the same amount of energy needed to power eight houses on Earth.” In addition, he said that a fission power system could operate in a variety of locations such as in craters, canyons or caves.

“The main point is that nuclear power has the ability to provide a power-rich environment to the astronauts or science packages anywhere in our solar system and that this technology is mature, affordable and safe to use,” Werner said.

Fission power systems rely on energy generated from nuclear fission. Nuclear fission works by splitting uranium atoms to generate heat that is then converted into electric power. The primary components of a fission power system are similar to those found in the commercial reactors currently in use: a heat source, power conversion, heat rejection and power conditioning and distribution.

Werner added that despite the similarities in components, fission power systems for space applications feature a number of differences compared with commercial reactors.

“While the physics are the same, the low power levels, control of the reactor and the material used for neutron reflection back into the core are completely different,” Werner said. “Weight is also a significant factor that must be minimized in a space reactor that is not considered in a commercial reactor.”

Werner contends that once the technology is developed and validated, it may prove to be one of the most affordable and versatile options for providing long-term base power for the space exploration programs.

Source: American Chemical Society

Toronto - Beauty in Diversity

This is a short 5-minute film created by Dale Hildebrand outlining Toronto's diverse and multicultural population. It is a cinematic journey across Toronto's many rituals, traditions and cultures.

T O in 2 4 from Dale Hildebrand on Vimeo.

Geoffrey West: The math of Cities and Companies

Physicist Geoffrey West has found that 'universality' can also be found within urban populations and economic growth. He shows how wealth, crime rate, population, walking speed and many other factors of a city can be calculated through simple universal laws. Furthermore, much of what is discussed is related to the nature of biology and the universal laws that have been discovered in biology.

This is some food for thought.

Nanowire Discovery Revolutionizes Bio-electronics

Researches recently discovered that an electrical charge could be conducted across the biofilm of specialized bacteria.

A team of researchers at the University of Massachusetts Amherst discovered this property in the bacterium Geobacter sulfurreducens, a bacterium found below the surface that reduces metals. More specifically, the conductive property was found in the microbial nanowires produced by the bacterium.

A picture of a Geobacter bacterium and its nanowire network (Credit: Anna Klimes and Ernie Carbone)

The nanowires allow for electrons to travel long distances, and furthermore, these charges move as efficiently as synthetic organic metallic nanostructures. This discovery could possibly revolutionize the field of bio-electronics, in addition with the possibility of many real world applications.

Scientists believe that the properties of this biofilm can be further controlled and manipulated by regulating the gene that controls this function. This will ultimately create a new strain, in the hopes of producing new eco-friendly and less expensive materials. 

Lead microbiologist Derek Lovely retorted, "We're basically making electronics out of vinegar. It can't get much cheaper or more 'green' than that."

The 'Golden Apple'

Apple Inc, as you all know, is a multinational corporation that designs consumer electronics (the iPod, iPhone, Tablet PC's), personal computers, and computer software.

It is a unbelievably strong competitor in its market; one might even say that Apple is 'oblivious', to an extent, to today's economic troubles (let it be noted that as of July 2011, Apple has larger financial reserves than the US government).  So, what's Apple's secret? Why does it continue to flourish in a declining economy, where many other multinational companies are facing vast losses? The secret lies within Apple's 'personality'.

Over the years, Apple has developed many products and they all portray a certain style or character. Apple's products, simply put, are creative, appealing, user-friendly and above all, innovative. Unlike its competitor Microsoft, Apple has the ability to not only create its own software, but personal computers as well. Essentially, it has monopolized, in fact even 'created' its own market. Apple experiences a world of freedom the likes of which no other company can even compare to. One electronics company may offer games, another may offer phones, or computers, or software. Apple, however, is a whole 'ecosystem' itself. Apple, by itself, has the ability to: create its own product, market that product and then provide accessories, applications, software and other support.....by God, that's simply ingenious.

Let's compile a short list of all the products Apple has:

• The iPod series
• The iPhone series
• iTunes
• Personal Computers
• Computer Software
• App Store
• Accessories - Earphones, Protective Cases, etc

So, Apple not only retails music devices, phones and computers; but it also provides content and services, interfaces and software, in addition to an army of applications. Well Apple, no wonder Fortune Magazine labels you as the most admired company in the United States - that and the seven billion dollar plus profit share you showed this quarter.

Munk Debates - Will the 21st Century belong to China?

On June 17, 2011 the 'Munk Debates' were held here in Toronto.

The topic of interest - 'Will the 21st Century belong to China?'

The speakers included:

Pro (In support of the question)

• Niall Ferguson - Professor of History and Business Administration at Harvard, as well as a Senior Research Fellow at many other institutes
• David Daokui Li - The Director of the Center for China in the World Economy at Tsinghua University School of Economics and Management in Beijing

Con (Not in favour of the question)

• Fareed Zakaria - Host of CNN's international affairs program
• Henry Kissinger - Formerly the 56th Secretary of State of the United States

To begin, both sides began with a six minute introduction of the arguments they would present. The nature of the arguments presented were complex, and furthermore the debate covered a wide array and plethora of factors such as: political, geo-politcal, economic, cultural and social factors. Overall, both sides represented themselves well; providing supporting facts and evidence, interpolating and extrapolating information, as well as providing historical context and content.

"The key to the twenty-first century lies in the decline of the west", remarked Ferguson. He noted the explosive growth in China's economy over the previous years, as well as its manufacturing sector as one of the most essential factors. Furthermore, he implied the downfall of the west due to their inability of managing liabilities.

In contrast, "most Asian 'tigers' have grown about 9% a year for about twenty to twenty-five years", stated Fareed Zakaria. He then continued by saying that "they then shift downwards to about 6% or 5% a year". In addition, he stated that China has a inefficient 'quality of growth' - simply put, they consume vast quantities of resources for small gains.

Aside from both those speakers, David Li and Dr Kissinger held the most unique views in my opinion. "China's emergence is not implying it will dominate", said Li. Kissinger agreed and praised China's success but argued that internal problems (an aging society, lack of jobs, extreme differences between advanced coastal regions and developing interior regions, and a vast migrant population) will inhibit China. "Together we will all own the century", Li concluded.

In the end however, the guest of honour, Henry Kissinger, and his debate partner Fareed Zakaria were announced the victors of the debate.

I personally found it difficult to establish either a definite 'yes' or 'no' response to this question due to the complexity of the factors involved. However, taking into account my personal knowledge of China as well as the arguments presented, I believe that China will play a predominant role, but  it in fact will not control the century.

Carlos Slim Helú - Success

First and foremost, welcome to my blog.
For my very first post, I thought this would be appropriate.
This was a letter sent to graduating university students by Carlos Slim Helú - philanthropist and the world's richest man.
His message is one that truly inspires.

Mexico City, June 1994

"I write to you this letter in order to share some of my life experiences, hoping it will contribute to your education, your way of thinking and living, your emotional well-being, your sense of responsibility to yourselves and to others, your maturity, and above all, to your happiness, which should be the result of your daily existence.
You are privileged within society due to your talents and efforts, and for the best reason, your own worth.
Success is not about doing things well or even very well, or being acknowledged by others. It is not an external opinion, but rather an internal status. It is the harmony between the soul and your emotions, which requires love, family, friendship, authenticity and integrity.
To be as exceptional as you are is a privilege, but it also entails many risks that can have an impact on values that are much more important than professional, economic, social or political “success”. Emotional strength and stability are in the interior life, and in avoiding emotions that erode the soul such as envy, jealousy, arrogance, lust, selfishness, vengeance, greed and laziness, which are a poison that is ingested little by little.
When you give, do not expect to receive. “Fragrance clings to the hand that gives the rose,” says a Chinese proverb. Do not allow negative feelings and emotions to control your mind. Emotional harm does not come from others; it is conceived and developed within ourselves.
Do not mix up your values or betray your principles. Life’s road is very long, but it is traveled fast. Live the present intensely and fully, do not let the past be a burden, and let the future be an incentive. Each person forges his or her own destiny and it may influence reality. Do not ignore it.
Live with positive feelings and emotions such as love, friendship, loyalty, courage, joy, good humor, enthusiasm, peace, serenity, patience, trust, tolerance, prudence and responsibility. Do not allow their opposites to invade your soul, may they pass quickly from your mind, do not allow them to stay there, banish them. You will make mistakes many times, it is normal and human; but try to make them small, then accept, correct and forget them. Do not be obsessed by them; heaven and hell are within us. What is most valuable in life does not cost anything but is very precious: love, friendship, nature and what man has been able to achieve with it; the forms, colors, sounds, smells that we perceive with our senses can only be appreciated when we are emotionally awake.
Live without fear and guilt; fear is the worst feeling men can have, it weakens them, inhibits action and depresses them. Guilt is a tremendous burden in our lives, the way we think and act. Guilt and fear make the present difficult and obstruct the future. To fight them, let us have good sense and accept ourselves as we are, with our realities, our merits and our sorrows.
Staying occupied displaces preoccupation and problems, and when we face our problems, they disappear. Thus, they make us stronger every day. We should learn from failure, and successes should be silent incentives. Act always as your conscience dictates, because it never lies. Fear and guilt will then be minimal. Do not block yourself in, do not ruin your life, live it with intelligence, with soul and senses aware and on the alert; get to know their manifestations and train yourselves to appreciate and enjoy life.
Work well done is not only a responsibility to yourselves and society; it is also an emotional need.
At the end we depart with nothing, we leave behind only our work, family and friends, and, perhaps, a positive influence which we have planted.

My very best wishes,

Carlos Slim Helú"