Showing posts with label EUROPEAN UNION. Show all posts
Showing posts with label EUROPEAN UNION. Show all posts

Sunday, May 6, 2012

DTN News - DEFENSE NEWS: Harmonizing European Defense Efforts

Defense News: DTN News - DEFENSE NEWS: Harmonizing European Defense Efforts
Source: DTN News - - This article compiled by Roger Smith from reliable sources By Robert K. Ackerman, SIGNAL Magazine
(NSI News Source Info) TORONTO, Canada - May 6, 2012: The European Union is trying to bring the defense programs of its 27 member nations into synchronicity before the budget boom is lowered on military spending. This harmonization has been a goal for several years, but now it has assumed greater urgency in a time of both greater limitations and more diverse missions.
With the United States the world’s undisputed military superpower and NATO the prevailing defense alliance, the European Union (EU) is striving to develop a military force among member nations that is both effective and efficient. It has participated in several multinational operations, some of which are ongoing. However, the EU force has yet to achieve a satisfactory complementary role with NATO, and the budgetary pressures that are affecting democracies around the world threaten to derail EU efforts to build a distinct military force with its own identity in the global security realm.

So, that force is working to improve its functionality in a time of rising demand and declining resources. Solutions for the two issues may go hand-in-hand as the continent grapples with achieving its long-term goals.

Gen. Håkan Syrén, SWN, is the chairman of the European Union Military Committee (EUMC). He states that solving most of the challenges facing the European Union may require the effective pooling and sharing of defense efforts, which will allow the European Union to attain greater operational effect without increases in spending. This approach would not entail all EU members engaging in the same activity; rather, it would involve clusters of nations cooperating in complementary ways. Areas where this approach would bear fruit quickly include training and exercising, procurement and surveillance, the general points out.

“We must not just look at what we don’t have. We must also look at what we have,” Gen. Syrén declares. In this vein, the European Union is looking at overcapacities that can be altered to realize greater efficiencies.

The past year has seen progress in getting European nations to pool and share—to “work smarter,” the general says. However, that type of cultural and logistical change takes time, which is in short supply with severe budgetary pressures constraining member nations.

Gen. Syrén describes four strategic priorities for the short term. These include ongoing operations in the Horn of Africa and the Middle East as well as developing a more effective use of European military capabilities. Also on the list is the advancement of strategic partnerships with organizations such as the United Nations, the African Union, NATO and individual states outside of the European Union. And, the EUMC is pursuing a comprehensive approach to its operations. The general observes that the European Union’s operations in the Horn of Africa could serve as a testbed for the comprehensive approach, which is outlined in the 2007 Treaty of Lisbon that laid the foundation for a permanent European structured cooperation in defense.

For the long term, Gen. Syrén allows, the EUMC is facing a strategic change that is underway on the other side of the globe. “It is very clear that the center of gravity is going from this corner of the world to the Far East,” he says. Combined with the budget constraints, this shift is affecting Europe’s defense activities. The general recalls how former U.S. Secretary of Defense Robert Gates, in a farewell statement, called for Europe to shoulder more responsibility for its own defense.

Yet, as with all democracies’ militaries, the global financial crisis has hamstrung Europe’s defense efforts. Since the end of the Cold War, European nations intended to spend about 2 percent of their gross domestic product (GDP) on defense. However, that goal has faded in recent years, and Gen. Syrén admits that some nations even come in as low as 0.7 percent of GDP for defense. “When you have 27 member states doing their defense budgets individually, it is difficult to have a holistic view of this. Member states are really losing their capacity to keep up a long-term perspective,” he observes, adding that it is difficult for the European Union to coordinate defense efforts in this environment.
  
An Airbus A400M lands on an unpaved airfield. Gen. Syrén cites strategic airlift as one area that needs modernization to improve Europe’s defense capabilities.

However, Gen. Syrén emphasizes that Europe is not out of money for defense spending. Its members spend a total of about $200 billion annually on defense. These nations must maximize their return on that investment.

Ironically, the budget crisis is a good argument for EU member states to cooperate on complementary military development. “I understand that 27 sovereign states must have 27 headquarters, but we have to look very carefully at how we are executing our business,” the general says. “Do we really need all the war colleges? Can we continue with many different logistical concepts? Do we need a dozen different manufacturers of armored personnel vehicles? Do we need more than a dozen naval shipyards? Do we really need four different fourth-generation combat aircraft?

“We have to look at how we are doing the business; and in this context, pooling and sharing can be both a useful tool and also a useful wakeup call that we can do business together,” he states.

The general continues that the European Union has developed a number of initiatives and proposals, but these represent just a first step. “If I compare the situation today with when we started this effort one and a half years ago—and I can count on my fingers what kind of savings this can give us against the budget cuts we have seen the past year and that we have ahead of us—the situation is getting worse. So, we have to take pooling and sharing to a completely different level.”

Part of the challenge is that many nations agree with the concept in principle, but then they cannot agree on how to implement it. Leaders come to view the next step in implementation as a threat to their nation’s sovereignty, the general allows. Some nations also view it as a threat to their defense industrial base, with resultant reductions in domestic employment. “This discussion must be taken to the highest political level to work out these very difficult questions,” he says. “We are at that stage.”

Many European nations have taken to forming bilateral or even trilateral military force alliances with their neighbors. These mini-alliances are a positive development, the general says, and the European Union can build on them. The battle group concept, in which regional forces group in clusters, also contributes to the building of a European defense force. Training and exercise in particular benefit from these agreements.

These local cooperative approaches might be a key to reaching the goal of an EU-wide complementary defense. “A bilateral or trilateral [approach] can be a good initiative or inspiration for other member states to join and make it better and wider,” the general suggests.

Not only does this approach break down barriers between countries, it also provides better cost-effectiveness, Gen. Syrén points out. “The driver is the pooling and sharing initiative, along with the understanding that we cannot continue to do business as we have done before. We have to do it differently while we are under these budget constraints.”

And, as with all modern militaries, Europe must modernize its force to respond to changes in the global security arena. The recent operation in support of the Libyan people rebelling against the government of Muammar Gaddafi illuminated several shortcomings in European defense capabilities. These included precision munitions, strategic airlift and intelligence. All of these must be addressed in the long term, Gen. Syrén points out.

“You can take any one of the conflicts [in which the EU has participated] and these [needs] have been asked for,” he relates.

The general adds helicopters, mid-air refueling, medical units and engineering to this list of military shortcomings that need remedying. In terms of capabilities, Gen. Syrén wants a single surveillance picture for maritime units.

New threats such as cyberwar and the consequences of climate change also are affecting defense planning for the European Union. These threats join weapons of mass destruction as concerns for the EUMC.

The European Union has not yet clearly defined its course of action for dealing with the cyberthreat, Gen. Syrén admits. A commission is expected to generate its first paper toward developing a framework for action shortly.

Climate change is an issue because the melting Arctic icecap is opening up new sea lanes. Many of the nations that border the Arctic now are looking at newly accessible regions in which the undersea shelf may hold vast natural resources such as oil and gas. The potential for competing claims makes this a geopolitical issue, and the military must stand ready if needed to contribute to resolution, the general observes.

Even though 21 of the European Union’s 27 member nations also belong to NATO, the relationship between the EU military and the Atlantic alliance remains unsettled. For example, some in NATO are concerned that a strong EU military will weaken NATO. Gen. Syrén describes the barriers between NATO and the European Union defense force as purely political. Accordingly, eliminating them will require action at the political level. “We in uniform cannot solve the problems alone; nor can the civilian authorities,” he says. Both the NATO secretary-general and the EU high representative have been clear about their efforts to resolve differences. “Willingness is not the problem,” Gen. Syrén allows. “Now, we have to wait for the result.”

The general notes that the two forces have cooperated well in operations such as Ocean Shield in the Gulf of Aden and in Afghanistan. The two organizations are able to work out important details when they cooperate in theater. He views his job as ensuring that no competition emerges between NATO and the EUMC, and he lauds the relationship he has with his counterpart in NATO. “We really can be complementary to NATO,” Gen. Syrén offers.

One way that the European Union can complement NATO is through civilian operations. These can include state-building measures such as economic assistance, food relief and establishing law and order mechanisms.


*Link for This article compiled by Roger Smith from reliable sources By Robert K. Ackerman, SIGNAL Magazine
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*This article is being posted from Toronto, Canada By DTN News ~ Defense-Technology News Contact:dtnnews@ymail.com 
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Friday, April 13, 2012

DTN News - MYANMAR NEWS: British Prime Minister David Cameron In Myanmar - Support Suspending Sanctions

Defense News: DTN News - MYANMAR NEWS: British Prime Minister David Cameron In Myanmar - Support Suspending Sanctions
*British PM calls for suspending Myanmar sanctions
Source: DTN News - - This article compiled by Roger Smith from reliable sources AP
(NSI News Source Info) TORONTO, Canada - April 13, 2012: British Prime Minister David Cameron said Friday that he would support suspending the European Union's economic sanctions on Myanmar, which are to be reviewed by the end of the month.
Cameron spoke after meetings with the country's reform-minded president, Thein Sein, and opposition leader Aung San Suu Kyi, a longtime political prisoner who was recently elected to parliament in Myanmar, a former British colony.
However, Cameron specified that he did not want to see an arms embargo on Myanmar be lifted as part of any easing of sanctions. The embargo, along with economic and political sanctions, was imposed during the repressive rule of the country's previous military government.
"We know there is still much, much more needed to be done, as the president himself has acknowledged, that there are more changes that need to be made," Cameron said at a news conference after meeting with Suu Kyi. "The right thing for the world to do is to encourage the change and to believe in the possibility of peaceful progress towards democracy."
By talking of suspending rather than lifting sanctions, Cameron was making clear the move would be a provisional one that could easily be withdrawn, if judged necessary.
Western nations have held out the prospect of easing sanctions if Thein Sein, a former general who retains close ties to the military, continues the political liberalization he began after taking office a year ago. Foreign investors as well as Myanmar entrepreneurs expect a business boom when restrictions are lifted.
Cameron, speaking with Suu Kyi by his side, told reporters that he had met with Thein Sein and concluded "there are prospects of change in Burma, and I think it is right for the rest of the world to respond to those changes. It is right to suspend the sanctions there are against Burma." He added that the suspension would "obviously" not include ending the arms embargo. Burma is the former name for Myanmar.
Thein Sein's reforms are seen as being mainly driven by a desire for sanctions to be lifted, with those imposing them gradually easing restrictions in return for more reforms, which so far have included the freeing of many political prisoners and reconciliation with Suu Kyi's pro-democracy movement.
If the EU, which is scheduled to take up the issue on April 23, suspends sanctions, it will put pressure on the United States to do likewise, for competitive business reasons. Both the EU and the U.S. restrict investment and trade with Myanmar, along with a slew of more targeted measures aimed at Myanmar military figures involved with repression, and their families and business cronies.
Suu Kyi — who attended Oxford and whose late husband was British — endorsed Cameron's approach.
"I support the idea of suspension rather than the lifting of sanctions because this would be an acknowledgment of the role of the president and other reformers," she said. "This suspension would have taken place because of steps taken by the president and other reformers and it would also make it quite clear to those who are against reform that should they try to obstruct the way of the reformers, then sanctions could come back."
While the international community has applauded political liberalization in Myanmar, it remains concerned about conflict with ethnic rebel groups, who have long been seeking greater autonomy from the central government. The government has been negotiating cease-fires with many, but remains embroiled in a bitter, fitful struggle with the Kachin minority in the country's far north.
As long as such fighting continues, there is no chance the arms embargo will be lifted. However, the failure to do so will affect Myanmar very little, as it had gotten around the embargo for years by buying military items from other suppliers, including China, North Korea and Eastern European nations.
Cameron held talks with Thein Sein soon after arriving in Myanmar's capital, Naypyitaw, and later met separately with Suu Kyi at her home in Yangon during his one-day visit.
His visit is the first in memory by a British prime minister, and it may actually be the first by a serving British head of government since Myanmar obtained its independence from Britain in 1948, when it was called Burma.
Suu Kyi was under house arrest during most of the past two decades under military rule. But as part of her rapprochement with the government, her National League for Democracy party took part in April 1 by-elections to win 43 of the 44 parliamentary seats it contested.
She will head the opposition bloc in parliament when it convenes on April 23, though Suu Kyi's party has suggested that it may delay taking its seats because it finds the wording of the oath of office contrary to its principles. The oath talks of protecting the constitution, which has clauses the NLD considers undemocratic.
Cameron invited Suu Kyi to come to the United Kingdom in June to see her "beloved Oxford" and said that it would be a sign of progress if she were able to leave her country and then return to carry out her duties as a lawmaker. When she was at odds with the former ruling junta, she declined to leave for fear she would be barred from returning.
Suu Kyi replied that "two years ago I would have said 'thank you' for the invitation, 'but sorry.' But now I am able to say 'perhaps,' and that's great progress."

*Link for This article compiled by Roger Smith from reliable sources AP
*Speaking Image - Creation of DTN News ~ Defense Technology News 
*This article is being posted from Toronto, Canada By DTN News ~ Defense-Technology News Contact:dtnnews@ymail.com 
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Thursday, February 16, 2012

DTN News - DEFENSE NEWS: Panetta Cites ‘Red Lines’ Iran Should Avoid

Defense News: DTN News - DEFENSE NEWS: Panetta Cites ‘Red Lines’ Iran Should Avoid
Source: DTN News - - This article compiled by Roger Smith from reliable sources By Elaine Sanchez - American Forces Press Service
(NSI News Source Info) TORONTO, Canada - February 16, 2012:  The nation is open to reaching diplomatic solutions with Iran, but is keeping all options on the table in case clear-cut “red lines” are crossed, Defense Secretary Leon E. Panetta said today.
Speaking to members of a House Appropriations subcommittee, Panetta said Iran is becoming increasingly isolated in the world.
“The international community has sent a very clear message,” he said. “We will not tolerate this. You’ve got to change your ways. You’ve got to come into the international community. You’ve got to abide by international laws, rules and regulations.”
The United States and the international community share the same concerns, Panetta noted. First, he said, “We will not allow Iran to develop a nuclear weapon.”
Panetta said intelligence reports clearly indicate that Iran continues to develop its enrichment capability; however, “intelligence does not show they’ve made the decision to proceed with developing a nuclear weapon.”
“That is the red line that would concern us and that would ensure the international community, hopefully together, would respond,” he said.
The international community also will not allow Iran to close the Strait of Hormuz, the secretary said. The strait is the only sea passage to the open ocean for petroleum-producing nations in the Persian Gulf region. Iran recently threatened to cut off access to the strait if the United States continues to maintain an aircraft carrier presence there.
Other concerns include the spread of violence, the country’s support of terrorism and its attempts to undermine other nations, Panetta added.
“All of that has been made very clear,” he said.
The international community has implemented strong diplomatic and economic sanctions that are having “a very strong impact,” he said.
“We are open … to negotiations with them to try to find a diplomatic solution to these issues, but we do keep all options on the table in the event the red lines, I just made very clear, are crossed,” Panetta said.

*Link for This article compiled by Roger Smith from reliable sources By Elaine Sanchez - American Forces Press Service
*Speaking Image - Creation of DTN News ~ Defense Technology News 
*This article is being posted from Toronto, Canada By DTN News ~ Defense-Technology News Contact:dtnnews@ymail.com 
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Monday, February 13, 2012

DTN News - DEFENSE NEWS: U.S. Navy says Iran Prepares Suicide Bomb Boats In Gulf

Defense News: DTN News - DEFENSE NEWS: U.S. Navy says Iran Prepares Suicide Bomb Boats In Gulf
Source: DTN News - - This article compiled by Roger Smith from reliable sources  By Warda Al-Jawahiry Manama  - Reuters
(NSI News Source Info) TORONTO, Canada - February 12, 2012: Iran has built up its naval forces in the Gulf and prepared boats that could be used in suicide attacks, but the U.S. Navy can prevent it from blocking the Strait of Hormuz, the commander of U.S. naval forces in the region said on Sunday.

Iran has made a series of threats in recent weeks to disrupt shipping in the Gulf or strike U.S. forces in retaliation if its oil trade is shut down by sanctions, or if its disputed nuclear program comes under attack.
"They have increased the number of submarines ... they increased the number of fast attack craft," Vice Admiral Mark Fox told reporters. "Some of the small boats have been outfitted with a large warhead that could be used as a suicide explosive device. The Iranians have a large mine inventory."

"We have watched with interest their development of long range rockets and short, medium and long range ballistic missiles and of course ... the development of their nuclear program," Fox, who heads the U.S. Fifth Fleet, said at a briefing on the fleet's base in the Gulf state of Bahrain.

Iran now has 10 small submarines, he said.

Military experts say the U.S. Navy's Fifth Fleet patrolling the Gulf - which always has at least one giant supercarrier accompanied by scores of jets and a fleet of frigates and destroyers - is overwhelmingly more powerful than Iran's navy.

But ever since al Qaeda suicide bombers in a small boat killed 17 sailors on board the destroyer U.S.S. Cole in a port in Yemen in 1996, Washington has been wary of the vulnerability of its huge battleships to bomb attacks by small enemy craft.

Asked whether the U.S. Navy was prepared for an attack or other trouble in the Gulf, Fox said: "We are very vigilant, we have built a wide range of options to give the president and we are ready... What if it happened tonight? We are ready today."

Iranian officials have threatened to block the Strait of Hormuz, the outlet to the Gulf through which nearly all of the Middle East's oil sails.

Asked if he took Iran's threats seriously, Fox Said: "Could they make like extremely difficult for us? Yes they could. If we did nothing and they were able to operate without being inhibited, yeah they could close it, but I can't see that we would ever be in that position."

He added that diplomacy should be given priority in resolving the tension.
"So when you hear discussion about all this overheated rhetoric from Iran we really believe that the best way to handle this is with diplomacy... I am absolutely convinced that is the way to go. It is our job to be prepared. We are vigilant."

Contacts between the U.S. Navy and Iranian craft in the Gulf region were routine, Fox said, referring to cases where his sailors helped Iranian ships that were in distress or threatened by pirates.

In addition to commanding the Fifth Fleet, Fox is also the commander of a multinational naval task force charged with ensuring Gulf shipping routes stay open. Although most of its firepower is American, the task force also includes other Western countries and the Gulf Arab states.

The European Union slapped an embargo on Iranian oil last month, which is due to kick in completely by July 1. The United States and EU have both imposed new sanctions on Iran's central bank which make it difficult for countries to pay Tehran for oil and for Iran to pay for the goods it imports.

(Editing by Firouz Sedarat and Peter Graff)

*Link for This article compiled by Roger Smith from reliable sources  By Warda Al-Jawahiry Manama  - Reuters
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*This article is being posted from Toronto, Canada By DTN News ~ Defense-Technology News Contact:dtnnews@ymail.com 
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Sunday, February 12, 2012

DTN News - GREECE FINANCIAL CRISIS: Greece Set To Defy Protesters And Accept Eurozone Bailout Deal

Defense News: DTN News - GREECE FINANCIAL CRISIS: Greece Set To Defy Protesters And Accept Eurozone Bailout Deal
*Violence erupts in Athens as MPs debate package of austerity cuts worth €3.3bn as country seeks to avoid defaulting on debt
Source: DTN News - - This article compiled by Roger Smith from reliable sources Ian Traynor, Europe editor, and Helena Smith in Athens - guardian.co.uk, Sunday 12 February 2012 
 (NSI News Source Info) TORONTO, Canada - February 12, 2012: Greece's parliament was expected to defy angry protesters on the streets of Athens and endorse a deeply unpopular package of savage austerity measures in order to try to avoid a sovereign default and retain the euro as its currency.

With eurozone leaders declaring it was time for Greece to put up or shut up and that Athens' promises could no longer be believed, Greece's two main political parties and the caretaker prime minister invoked apocalyptic scenarios for the country if the €3.3bn (£2.76bn) of cuts ordained by the eurozone were not supported.
Street battles between police firing rounds of tear gas and demonstrators hurling firebombs and marble slabs left Syntagma Square, the plaza in front of the parliament building, resembling a war zone. Rubbish bins burned as plumes of smoke and asphyxiating clouds of toxic chemicals filled the air.

Bangs could be heard inside parliament and the tear gas drifting across square reached the debating chamber. Last night several buildings has been set on fire, including a cinema, bank and a number of shops, and Greek television reported that dozens of citizens and at least 40 police officers had been injured.

Under a sea of banners denouncing further wage, pension and job cuts, tens of thousands of protesters chanted against "the occupation" of the country by foreign lenders keeping Greece afloat.

"The rebellion has begun," the veteran leftist Manolis Glezos told TV reporters. "These measures will never pass. They are a breach of our democracy," he spluttered, holding a surgical mask to his face against the fumes.

The prime minister, Lukas Papademos, warned ahead of the vote that wages and pensions would go unpaid, hospitals and schools would be devoid of funding, banks would collapse and people's savings would be lost if the 300 MPs rejected the terms set by the eurozone for receipt of a €130bn bailout.

Without the bailout – the second in two years – bankrupt Greece will be insolvent and have to default on its debt next month when it needs to redeem €14.5bn of loans.

"A disorderly default would throw the country into a disastrous adventure. It would create conditions of uncontrollable economic chaos and social eruption," Papademos said in a television address.

Despite six government resignations in recent days and the departure of the small extremist Laos party from the caretaker coalition, the two main parties – the Pasok socialists and the centre-right New Democracy – can muster a comfortable majority, although analysts predicted dozens of defections to the rejectionist camp. But in fiery exchanges in the chamber, finance minister Evangelos Venizelos warned: "If the law is not passed, the country will go bankrupt."

George Papandreou, the former socialist prime minister felled by the crisis last year, declared that Greece was at war and that it had to win. Antonis Samaras, the centre-right leader tipped to be prime minister after elections expected in April, also sought to rally his MPs behind accepting the deal after rejecting key details of the cuts for weeks.

With trust between Athens and its eurozone creditors, led by Germany, at an all-time low, the Greek government was told the time for pledges had run out.

"Greece's promises are no longer enough for us," said Wolfgang Schäuble, Germany's finance minister, who also spoke of the possibility of Greece leaving the euro.

"The Greeks have not quite managed to form a government supported properly by all the parties and therefore have not been able to tackle the necessary reforms as decisively as we would all like," said Schäuble.
While eurozone finance ministers are expected to agree to the €130bn bailout on Wednesday provided Greece meets its end of the bargain, Berlin is insisting that most of the money does not actually go to Greece but is held in a separate account and is used purely to service the country's debt.

EU ministerial sources said that account could hold up to 70% of the bailout funds. Such a move would be unprecedented and is likely to be contested. But the German proposal is also supported by France. By guaranteeing that Greece's creditors are repaid, there would be no default.

As part of the €3.3bn in savings ordered by the eurozone, the Greeks have to specify how a €325m overspend will be resolved. While the parliament was due to vote through the measures, it remained unclear where these extra savings were coming from.

A particularly neuralgic point in the savings has been the requirement to slash the minimum wage by 22%. "It's a big problem in Greece that the minimum wage is so high," said Schauble. "That's why there are so many black [illegal] workers. That wouldn't happen if they had a functioning administration."

As Greece's MPs prepared to vote on the austerity package, thousands of protesters remained on the streets of Athens denouncing the Germans and the EU. The demonstrations against austerity also spread to Portugal, the second of three eurozone countries trading hairshirt economics for a eurozone bailout, where tens of thousands came out in protest against collapsing living standards.

*Link for This article compiled by Roger Smith from reliable sources Ian Traynor, Europe editor, and Helena Smith in Athens - guardian.co.uk, Sunday 12 February 2012 
*Speaking Image - Creation of DTN News ~ Defense Technology News 
*This article is being posted from Toronto, Canada By DTN News ~ Defense-Technology News Contact:dtnnews@ymail.com 
©COPYRIGHT (C) DTN NEWS DEFENSE-TECHNOLOGY NEWS 

Monday, December 19, 2011

DTN News - U.S. FINANCIAL CRISIS NEWS: U.S. President Barack Obama Secured Funds For Next Nine Months To Avert Government Shutdown

Defense News: DTN News - U.S. FINANCIAL CRISIS NEWS: U.S. President Barack Obama Secured Funds For Next Nine Months To Avert Government Shutdown
Source: DTN News - - This article compiled by Roger Smith from reliable sources
 (NSI News Source Info) TORONTO, Canada - December 19, 2011: U.S. President Barack Obama walks away from the podium after making a statement in the White House Briefing Room in Washington December 17, 2011. The U.S. Senate on Saturday passed a $915 billion bill to fund most federal agency activities through next September and avert a government shutdown.

As America enters its worst economic period since the Great Depression, it is essential that we develop a broad understanding of the many factors that contributed to the U.S. financial crisis. This topic covers the latest news and information on the U.S. financial crisis, including a deep look into possible causes.  


U.S. Financial Crisis is part of Business Exchange, suggested by Bruce Judson. This topic contains 6,262 news and 463 blog items. Read updated news, blogs, and resources about U.S. Financial Crisis. Find user-submitted articles and reactions on U.S. Financial Crisis from like-minded professionals.

The collapse of Lehman Brothers in September 2008 helped trigger an economic and financial crisis that swept across the globe. 


*Euro-zone bank failures could lead to a credit squeeze in the United States


Concerns over the European debt crisis were overshadowed by stronger than expected economic data out of the US. The US Labor Depart-ment released figures that showed that initial jobless claims fell by 19,000 to 366,000 last week to their lowest levels since May 2008. Further-more, two reports from New York and Philadelphia indicated that manufacturing expanded more than forecast while the Federal Reserve Bank of New York's general economic index rose it the highest levels in seven months. The general strength of the data has prevented further falls in the markets overnight. The EUR has recovered to above 1.3000.

Meanwhile, Christine Lagarde, the MD of the International Monetary Fund made comments that, in the absence of the strong US data, would have triggered another market meltdown. She said that there is no country in the world that will be “immune to the crisis that we see not only unfolding, but escalating at a point where everybody would actually have to focus on what it can do.” Rising protectionism and isolation will lead to a situation similar to “what happened in the 30's and what followed is not something we are looking forward to.” Despite these dra-matic comments, the Australian dollar has recovered to above 0.9900 after having traded as low as 0.9860 during the European session.

Equity markets have stabilised after the release of stronger than expected US data. European bourses rose after Spain successfully sold EUR 6 billion in long term bonds with the DAX gaining 0.98% to 5,730 and the FTSE rose 0.63% to 5,401. In the US, the S&P500 has closed 0.32% higher at 1,215 as financial stocks rallied. Today, we have a data free Asian session so expect subdued conditions.

Commodities continued to ease overnight after the massive rout in the previous overnight session. WTI crude futures have fallen another 1.40% to $93.60 in response to Fed data that indicated falls in industrial output for the first time. Precious metals fell again on the back of a reduction in the probability of additional stimulus by the Fed Reserve. Gold is heading for its first quarterly loss in over 3 years losing 1% to $1,569 while silver gained 0.19% to $28.99. Soft commodities were mixed while copper has lost 0.55%. The CRB index has lost 0.84 points to 294.45.



EUR/USD opened the European session just below 1.3000 and once the better than expected Spanish government bond auctions took place the risk sentiment across all mar-kets increased with the Euro rallying towards the middle of the 1.30’s. New offers and profit taking from intraday speculative names capped the topside twice and once the negativity start-ed again thanks to Lagarde and Draghi the price dipped briefly back below 1.3000 before squeezing back to the middle of the range to close the US session at 1.3017.

Well that was a surprise with all the market data being released during both Europe and America, we were expecting a much more volatile two sessions of trade and to see a 70 point range in the Euro is very very disap-pointing! However, the quiet nature is likely to be even tighter than yesterdays 16 point range during Asia! Dips towards 1.2980 should pro-vide a floor whilst offers just above from rang-ers look likely to cap!




GBP/USD moved higher during the Lon-don morning despite the weaker than expected data releases, as the risk market sentiment increased because of the Spanish Bond auc-tions and some positive Eurozone data! The rally took the Cable above 1.5500 to make a 1.5530 top before the US morning selling re-started as warnings from Lagarde and Draghi about the state of the European Union and possible actions that the ECB could take in the future disappointed. These caused a short dip back to 1.5470 before we now close the day still being higher at 1.5508. Whilst we are not expecting much for the last session of the Asia week, a continued squeeze higher is not out of the question. We could possibly see a bounce towards 1.5570 where we should see new selling and longer term traders turning over some of the positions they squared when the price neared 1.5410. A dip towards 1.5470 should be enough for Asia but a break lower should see us return to 1.5410 soon.





USD/JPY has fallen back below the 78.00 handle during the late European and early US morning as the risk sentiment increased, so did the flow back out of the USD. The positive Spanish Bond auction and some OK Europe-an data lead the risk recovery. USD/JPY fell to a low of 77.75 as the pair just managed to get weak stops right on the 77.80 level. However, the momentum could not continue lower as the major player are still sitting on the sidelines with the USDJ/PY at present because of a cou-ple of factors, one being fear of BoJ interven-tion and the other the flow related to safe ha-ven movements on the large investors and money managers. The lack of data across the Asia region should ensure a slow day for the markets with traders focusing on Christmas shopping and plans for the holiday break. We are expecting today’s range to be 77.70 on the downside and offers at 78.00 even to cap any potential topside moves.




AUD/USD rallied strongly during the Eu-ropean session as the risk tone improved on the back of the Spain Bond auctions doubling the expected investment amount and whilst early US morning data was also better than expected. The AUD price managed to reach 0.9990 before option related selling and new bears took the opportunity to jump on the squeeze. Slow US session trade and the same sort of warnings from Lagarde and Draghi took the shine off the day and we now have the AUD closing at 0.9925.

Data free Friday again for the Australian mar-kets and with a lack of Asia data releases or events today it looks very unlikely that we will see any major movements with the tone dur-ing Asia this week being more focused on the coming holidays than any sign of market vola-tility. We will be looking for continued selling into the high 0.9900’s to cap any topside movement and dips towards 0.9880 should just about do it for today!


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