Some up. Some down.
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- UK FTSE is down 0.2%
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- Italy FTSE MIB is down 0.52%
- Germany 0.198%, down less than 1 bp
- France 0.921%, -4.2 bp
- UK 1.047% unchanged
- Spain 1.667% + 2 bp
- Italy 2.293% +1.2 bp
- Portugal 3.86% unchanged
- Greece 6.65% -6.9 bp
Raghuram Rajan, Professor of Finance at the University of Chicago and former governor of the Reserve Bank of India, warns of more turmoil ahead if the developed world fails to adapt to the fundamental forces of global change.
It is a pivotal moment on the eve of the financial crisis. In the late summer of 2005, the world’s most influential central bankers and economists gather in Jackson Hole at the foot of the Rocky Mountains. The atmosphere is carefree. Financial markets have nicely recovered from the bust of the dotcom bubble and the global economy is humming. Under the topic »Lessons for the Future» the presentations celebrate the era of Federal Reserve chairman Alan Greenspan, who has announced to resign in a few months. Since 1987 at the helm of the world’s most powerful central bank, he presided over a period of continuous growth and was one of the leading forces of deregulation in the financial sector.
But when Raghuram Rajan steps to the podium the mood suddenly turns icy. At that time the chief economist at the International Monetary Fund, the native Indian warns that unpredictable risks are building up in the financial system and that the banks are not prepared for an emergency. His dry analysis draws spiteful remarks. »I exaggerate only a bit when I say I felt like an early Christian who had wandered into a convention of half-starved lions», he recollects.
Soon, however, his prediction turns out to be correct. Less than one year later, the US housing boom runs out of steam which triggers the worst recession since the Great Depression. Today, Mr. Rajan who governed the Reserve Bank of India until last fall and now teaches finance at the University of Chicago, is reputed as one of the most distinguished economic thinkers on the planet. So what prompted him to voice his concerns at that time in Jackson Hole? Where does he think the world stands in the spring of 2017? And what is his outlook for the coming years?
After warnings yesterday, and on the heels of a “very good call” with President Trump, China has escalated its threats to North Korea over its nuclear tests. In another Global Times op-ed, China warns “if the North makes another provocative move this month, the Chinese society will be willing to adopt severe restrictive measures that have never been seen before…”
Yesterday’s editorial in the military-focused Global Times tabloid, owned and operated by the Communist Party’s People’s Daily newspaper, said that North Korea’s nuclear activities must not jeopardize northeastern China, and that if the North impacts China with its illicit nuclear tests through either “nuclear leakage or pollution”, then China will respond with force.
“China has a bottom line that it will protect at all costs, that is, the security and stability of northeast China… If the bottom line is touched, China will employ all means available including the military means to strike back. By that time, it is not an issue of discussion whether China acquiesces in the US’ blows, but the Chinese People’s Liberation Army (PLA) will launch attacks to DPRK nuclear facilities on its own.”
This, as the editorial puts it, is the “bottom line” for China; should it be crossed China will employ all means available including the military means to strike back,” warned the editorial.
SEAL Team 6 operator Robert O’Neill’s book “The Operator” details his career through killing bin Laden in Abbottabad, Pakistan, in 2011. The most shocking new detail is that he says he shot the terrorist leader in the forehead.
O’Neill recounts following other members of the team through the compound, when they spotted bin Laden’s son Khalid holding an AK-47. He says that they whispered “Khalid, come here,” and shot him in the face when he poked his head out.
Along with another team member, O’Neill says he went to the third floor and burst into bin Laden’s bedroom. The other operative tackled two screaming women who were present, fearing they may be wearing suicide vests, as O’Neill shot bin Laden in his head as he attempted to use his youngest wife as a human shield.
“In less than a second, I aimed above the woman’s right shoulder and pulled the trigger twice,” O’Neill wrote, according to a report from the New York Daily News. “Bin Laden’s head split open, and he dropped.
“I put another bullet in his head. Insurance.”
The Post details: